ARM mortgage rates as of October 24, 2025

Continue with us as we explain ARMs, examine situations where they could be a better choice than a standard fixed-rate mortgage, and review current ARM interest rates from several leading lenders.

You can see the previous business day’s ARM rates report here.

Mortgage rates for ARM loans from leading lenders

Coins2Day examined the latest figures up to October 23rd. The institutions supplied these sample rates, each predicated on particular assumptions regarding a hypothetical borrower's credit standing and geographic area. These estimates might incorporate an assumption of mortgage discount points. Should you decide to apply, be aware that the actual rate you get could differ from the sample rates presented.

A 7/6 ARM is one with a fixed rate for seven years, then adjustment periods every six months.

Fixed-rate mortgages versus adjustable-rate mortgages

Approximately 92% of all mortgages in the U.S. Are fixed-rate home loans, highlighting their dependable nature. While adjustable-rate mortgages (ARMs) permit interest rate adjustments post-initial term, fixed-rate loans secure a single rate throughout the loan's duration, offering desirable stability for numerous borrowers.

However, ARMs can be advantageous in specific circumstances. It's worth noting that approximately 8% of borrowers choose them instead of the more prevalent fixed-rate mortgages.

Situations where an adjustable-rate mortgage could be a good choice

Three types of buyers may favor ARMs:

• Short-term homeowners: If relocation is likely within a few years, ARMs may offer savings through low introductory rates while moving before future adjustments become a concern. But, weigh carefully if you’ll actually be able to move out of your starter home as quickly as you intend. 
• Property investors: Investors may leverage ARMs for a low initial rate, then may flip the home before adjustment periods kick in or may increase rent during periods of higher interest rates if they’re renting out the property. 
• Buyers facing elevated interest levels: During high-interest periods, ARMs might offer a lower rate during the introductory time frame and even the potential for rate reductions down the line if market conditions improve.

Adjustable-rate mortgages (ARMs) are a type of home loan where the interest rate can change over time.

ARMs typically begin with a period of low, fixed interest rates that lasts from three to ten years, after which they transition to adjustable periods. When these adjustments occur, your interest rate will be affected by various elements, such as:

• Benchmark indices like SOFR: Your ARM will typically be tied to a benchmark, commonly SOFR. This rate reflects the cost for banks to borrow cash overnight. The U.S. Treasury publishes a new SOFR each morning.
• Margins added by lenders: Margins are fixed percentages, which can often range between 2% and 3.5%, added by lenders to whatever benchmark is used for your ARM. The benchmark plus the margin helps determine your mortgage rate. These can vary based on things like your specific lender and your credit profile. 
• Rate caps: Rate adjustments are restricted by caps, which dictate the maximum increase allowed at certain times or throughout the loan's duration. These caps may cover initial, subsequent, and overall lifetime limits.

Typical ARM arrangements feature the 5/1 ARM (five years fixed, followed by yearly changes) and the 10/6 ARM (10 years fixed, then changes every six months). Additional arrangements consist of 3/1 ARMs, 7/1 ARMs, and 10/1 ARMs. 

Learn more: Why the Secured Overnight Financing Rate might matter for your mortgage.

Switching from an adjustable-rate mortgage to a fixed-rate loan

Circumstances can shift. You might have purchased a property with the intention of reselling it, only to discover it's a suitable primary dwelling. Alternatively, you may have acquired a first home and then found your plans to move on were delayed. You're not the only one in this situation. A significant portion of Millennial and Gen Z homeowners are sticking it out with their starter homes due to financial constraints preventing them from upgrading.

In such situations, it might make sense to refinance from an ARM to a fixed-rate mortgage. The process for doing this is much the same as refinancing from one fixed-rate loan to another. You’ll shop around with various lenders, submit the documents required for the application, and pay off your existing loan in full with the new one.

Advantages and disadvantages of variable-rate home loans

Like all mortgage options, ARMs come with advantages and disadvantages. It's crucial to thoroughly assess these with a reliable loan officer to determine if an ARM suits your specific needs. Here are some important considerations to begin with.