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Current ARM mortgage rates report for Aug. 21, 2026
While fixed-rate mortgages are far more popular than adjustable-rate mortgages, the latter are worth considering if you’ve got a little tolerance for uncertainty. That’s because an ARM may offer a low rate during its introductory period before adjustments kick in—making this loan type potentially attractive for folks planning to rent out or flip the property they’re buying, or who are planning to move before the introductory period comes to an end.
TL;DR
- Adjustable-rate mortgages (ARMs) may offer lower initial rates than fixed-rate mortgages.
- ARMs are attractive for short-term homeowners, property investors, or buyers facing elevated interest rates.
- ARM rates are influenced by benchmark indices (like SOFR), lender margins, and rate caps.
- Common ARM structures include 5/1, 7/6, and 10/6 ARMs.
- Pros include potential for lower introductory rates and reduced payments if rates decrease.
- Cons include significant payment increases after the fixed period, complex comparisons, and less predictability.
- Refinancing from an ARM to a fixed-rate mortgage is possible if circumstances change.