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Current ARM Mortgage Rates Report for Aug. 20, 2026
Homeowners with some tolerance for uncertainty might find that an adjustable-rate mortgage is worth considering as a way to get a low introductory rate before the adjustments kick in. This loan type can be a particularly good choice if you’re aiming to rent out for flip the property, or when you know you intend to move before the loan’s fixed-rate period ends.
TL;DR
- Adjustable-rate mortgages (ARMs) offer a lower introductory rate, making them suitable for those uncertain about long-term homeownership.
- ARMs are beneficial for individuals planning to move soon, real estate investors flipping properties, or buyers in high-interest rate environments.
- The ARM rate is tied to benchmarks like SOFR, plus a lender's margin, and is subject to adjustment caps.
- Common ARM types include 5/1, 7/6, and 10/6, indicating the initial fixed period and adjustment frequency.
- Refinancing from an ARM to a fixed-rate mortgage is possible if plans change.
- Pros of ARMs include potentially lower initial rates and easier qualification, while cons involve payment volatility and complex comparison.
- As of Aug. 19, average ARM rates varied, with 5/6 ARM Jumbo SOFR at 5.985% and 10/6 ARM Conforming SOFR at 6.629%.