Current ARM mortgage rates report for June 29, 2026 | Fortune
While the bulk of homebuyers choose fixed-rate mortgages, there are cases where you might want to look closely at an adjustable-rate mortgage instead. For example, ARMs can be a smart option for folks buying a property to rent out or flip, or intending to move within a few years—meaning you’d move before the ARM’s introductory fixed-rate period ends and adjustments begin.
Read on and we’ll explain how an ARM works, when you might want to consider an ARM over a fixed-rate loan, and look at current ARM rates from a few top lenders.
You can see the previous business day’s ARM rates report here.
Fortune reviewed the most recent data available as of June 26. These are sample rates provided by the institutions. Each one is based off specific assumptions about a hypothetical borrower’s credit profile and location. Estimates may include an assumption of mortgage discount points. If you choose to apply, know that the rate you receive may vary from the sample rates shown here.
A 7/6 ARM is one with a fixed rate for seven years, then adjustment periods every six months.
About 92% of households with mortgages have fixed-rate home loans. Unlike ARMs, where the interest rate can fluctuate after an initial fixed-rate period, your rate is the same for the life of the loan when you have a fixed-rate mortgage. It’s easy to see why that’s a popular option.
However, ARMs can make sense in certain situations. In other words, you might find you’re among the roughly 8% of mortgage holders who decide this type of loan offers an opportunity.
Saving up for a down payment? Make sure you have a high-yield savings account.
ARMs typically start off with a low, fixed interest rate for a set period of time—such as three, five, seven or 10 years—and after the “fixed period” expires, the “adjustment period” begins.
Here’s where things get interesting. During the adjustment period, the interest rate on your ARM can fluctuate based on several key factors, including:
The most common ARM length may be the 5/1, meaning the loan has a fixed interest rate for five years, and once that expires, the interest rate will start changing every one year for 25 years (most ARMs have 30-year terms).
Another common ARM length is the 10/6, meaning you’ll have a 10-year fixed period and a 20-year adjustment period during which the interest rate will change every six months. You may also see 3/1 ARMs, 7/1 ARMs and 10/1 ARMs.
Learn more: Why the Secured Overnight Financing Rate might matter for your mortgage.
Sometimes, even if it was advantageous to buy your property using an ARM, you eventually realize a fixed-rate mortgage would be preferable looking ahead. For instance, maybe you’ve decided your first home is going to be a long-term home after all. You’re not alone if that’s the situation—research from 2024 found that a substantial number of Millennial and Gen Z homeowners can’t afford to upgrade and are making do with their starter homes.
Regardless of the specific reason, know that it is possible to refi from an ARM to a fixed-rate mortgage. In fact, it’s probably a fairly common reason for ARM holders to refinance.
Refinancing from an ARM to a fixed-rate mortgage isn’t rocket science, and works pretty much like refinancing from fixed-to-fixed. You’ll apply with multiple lenders to find the best rates, provide the necessary documentation, close on your new loan and pay your old loan in full.
Like any other mortgage type, ARMs come with a mix of pros and cons. While your lender can ultimately decide which mortgage type is right for you, knowing the basics can help you budget and navigate the early steps of the process:
Glen is a commerce editor on the Fortune personal finance team covering housing, mortgages, and credit. He’s been immersed in the world of personal finance since 2019, holding editor and writer roles at USA TODAY Blueprint, Forbes Advisor, and LendingTree before he joined Fortune. Glen loves getting a chance to dig into complicated topics and break them down into manageable pieces of information that folks can easily digest and use in their daily lives.