10/03/2026
Home buyers are considering adjustable-rate mortgages (ARMs) again. Recent data indicates that applications for ARMs have increased significantly, with a rise of 113.1% from the previous year, and they now account for 25% of mortgage applications for new home purchases, up from 16% a year ago.
This resurgence is driven by the need for affordability in a high-rate market, as ARMs can offer lower initial interest rates compared to fixed-rate mortgages, making them attractive for many buyers.
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ARM share is at its highest since 2023. A 7/6 SOFR ARM sits at 6.27% vs. 6.58% for the 30-year fixed. Here’s the honest framework for who should consider one — and who should avoid it.