Current ARM mortgage rates

Today's ARM mortgage rates

As of Friday, January 16, 2026, the national average 5/1 ARM interest rate is 5.50%, down compared to last week’s of 5.58%. The national average 5/1 ARM refinance interest rate is 6.11%, up compared to last week’s of 6.07%.

Similar to fixed-rate mortgages, the rates on adjustable-rate loans have increased in recent years from pandemic-era lows. However, rates on all types of mortgages have decreased in recent months due to economic uncertainty — and the introductory rates on ARMs today are still lower than rates on fixed loans. ARM rates are also more directly influenced by Federal Reserve decisions. 

Compare current ARM rates versus other loan types

When is it a good idea to get an adjustable-rate mortgage?

An ARM might be a good idea if you can get a significantly lower APR than with a fixed-rate mortgage, or if you plan to move or refinance before the introductory rate period ends.

There are positives and negatives when it comes to ARMs, however. Let’s break down the pros and cons further:

Pros of ARM loans

• Lower payments to start: The lower introductory rate on an ARM makes the loan more affordable — at least initially — which frees up room in your budget.
• Significant savings if you plan to sell: If you’re certain you’ll move before the mortgage’s fixed-rate period ends, you could save a bundle on interest.

Cons of ARM loans

• Risk of higher rate: Predicting how interest rates will move is notoriously difficult. Even with caps in place, your rate and payment could rise considerably over the life of the ARM.
• Challenging to budget for: With a fixed-rate mortgage, you’ll have one predictable set payment. With an ARM, though, you’ll have a set payment only for the introductory period. After that, your payment could fluctuate — either up or down. This can make future budgeting or financial planning tricky. 

Types of ARM loans

There are several different types of ARM loans. The most common are known as hybrid ARMs, which have an initial fixed-rate period followed by a floating rate for the remainder of the loan. You'll often see these listed as numbers with slashes; for example, a 5/6 ARM or a 7/1 ARM. The first number indicates how many years the fixed rate stays fixed, and the second number indicates how often the rate adjusts after that initial fixed period — 6 for every six months, 1 for annually (i.e., once a year). So, for a 5/1 ARM — the type that usually carries the lowest rates — the rate stays fixed for the first five years and then adjusts annually after that.

Here’s a rundown of the most popular types:

• 3/1 ARM or 3/6 ARM: The first three years have a fixed rate followed by an adjustable rate for the remainder of the loan.
• 5/1 ARM or 5/6 ARM: The first five years have a fixed rate followed by an adjustable rate for the remainder of the loan.
• 7/1 ARM or 7/6 ARM: The first seven years have a fixed rate followed by an adjustable rate for the remainder of the loan.
• 10/1 ARM or 10/6 ARM: The first 10 years have a fixed rate followed by an adjustable rate for the remainder of the loan.

ARM loan requirements

When compared to other types of mortgages, ARMs typically have stricter requirements. That’s because lenders need to consider your ability to repay the loan if your rate moves higher. Here are a few criteria lenders will consider.

• Loan amount: In 2026, the limit for a conforming ARM is $832,750 in most areas. You could take on a jumbo ARM, which exceeds the conforming loan limit, though these types of loans might be harder to secure.
• Credit: With a higher credit score, you’re more likely to get a more competitive interest rate.  
• Debt-to-income ratio: Lenders will also look at your income in relation to your existing debt, such as credit card bills or car payments. 
• Down payment: Most conventional ARM loans require as little as 5% down.

Additional ARM loan resources

• All of your ARM loan questions, answered
• ARM loan calculator
• ARM loan refinance rates