ARM mortgage rates update for November 6, 2025

Continue reading for an explanation of how ARMs function, a discussion on when an ARM might be a suitable alternative to a fixed-rate mortgage, and a review of ARM 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

As of November 5th, Coins2Day examined the latest available figures. The institutions supplied these sample rates, each predicated on distinct assumptions concerning 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 are offered 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.

Mortgages: Fixed vs. Adjustable Rates

Fixed-rate mortgages are the prevalent choice for U.S. Homeowners, accounting for approximately 92% of all residential financing. In contrast to adjustable-rate mortgages (ARMs), where interest rates can fluctuate following an introductory phase, fixed-rate loans provide stability for their entire duration, which is a probable reason for their widespread adoption.

However, ARMs offer advantages in certain situations. Approximately 8% of borrowers opt for them due to their distinct advantages.

When you might think about getting an adjustable-rate mortgage

Three groups of homebuyers can commonly benefit from considering ARMs:

• Homeowners who intend to move soon: Should you anticipate relocating within a few years, possibly because this is your first home, an ARM could allow you to benefit from a reduced initial rate without concern for subsequent changes.
• Real estate investors: Landlords buying a property to rent out or house flippers intending to sell a property quickly may use ARMs with the intent of adjusting the monthly rent if interest rates increase or selling before the adjustment period kicks in.
• Buyers in high-interest environments: During times of elevated interest rates, ARMs can sometimes offer lower rates during the introductory period, and the potential for relief later if market conditions improve.

Adjustable-rate mortgages (ARMs) function in a specific way.

Adjustable-rate mortgages (ARMs) start with an initial fixed interest rate, typically for three, five, seven, or 10 years, after which the loan enters its variable rate phases. The extent to which your rate fluctuates during an adjustment period is influenced by several elements, such as:

• Benchmarks like SOFR: An ARM's rate usually connects to a benchmark, most often SOFR. This specific benchmark shows the expense for banks to get overnight funds. The U.S. Treasury publishes an updated daily. 
• Margins: Fixed margins are added by lenders on top of the benchmark to determine your ARM rate. These can often range between 2% to 3.5%.
• Caps: Adjustment limits restrict the extent to which rates can rise at certain points or throughout a period. You might encounter terms like initial adjustment caps, subsequent caps, and lifetime caps.

Typical ARM structures feature a 5/1 (five years of an introductory rate, then yearly changes) and a 10/6 (ten years of an introductory rate, then adjustments every six months). You'll also find 3/1, 7/1, and 10/1 ARMs available. 

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 arise. Intentions shift. Should you find yourself remaining in your initial residence for an extended period, and you originally secured an ARM, you may elect to refinance to a loan with a fixed interest rate.

Understand that you're not the only one facing this. A significant portion of Millennial and Gen Z property owners are unable to afford renovations and are continuing on in their starter homes

Refinancing an adjustable-rate mortgage (ARM) into a fixed-rate loan generally follows the same steps as switching from one fixed-rate mortgage to another. This involves comparing offers from different lenders, submitting the required application materials to demonstrate your creditworthiness and income align with the lender's criteria, and then using the proceeds from the new loan to fully repay your existing one. 

Advantages and disadvantages of variable-rate home loans

Collaborate with a reliable loan officer to confirm you're choosing the most suitable mortgage for your requirements. To help you begin, consider these fundamental elements when assessing if an ARM is a good fit for you.