• Home
  • News
  • Fortune 500
  • Tech
  • Finance
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
We have independently evaluated the products and services below. We may earn affiliate revenue from links in the content.
Personal FinanceReal Estate

Current ARM mortgage rates report for Oct. 10, 2025

Glen Luke Flanagan
By
Glen Luke FlanaganGlen Luke Flanagan
Glen Luke FlanaganGlen Luke Flanagan
Staff Editor, Personal Finance
Glen Luke Flanagan
By
Glen Luke FlanaganGlen Luke Flanagan
Glen Luke FlanaganGlen Luke Flanagan
Staff Editor, Personal Finance
October 10, 2025 at 2:55 PM UTC
Getty Images

The current average rate on 5-year adjustable-rate mortgages is 7.11%, according to data from the popular real estate marketplace Zillow. If you’re considering an ARM to buy a home, whether to call your own or as an investment property, read on—we’ll take a look at average rates for a couple ARM types, show you how ARMs work, and explain when such a loan might be worth considering even though fixed-rate mortgages are by far the more popular option. 

You can see the previous business day’s ARM rates report here.

Check Out Our Daily Rates Reports

  • Discover the highest high-yield savings rates, up to 5% for October 17, 2025.
  • Discover the highest CD rates, up to 4.35% for October 17, 2025.
  • Discover the current mortgage rates for October 17, 2025.
  • Discover current refi mortgage rates report for October 17, 2025.
  • Discover current ARM mortgage rates report for October 17, 2025.
  • Discover the current price of gold for October 17, 2025.
  • Discover the current price of silver for October 17, 2025.

Average ARM mortgage rates

Current 7-year ARM rate7.66%
Current 5-year ARM rate7.11%

Note that Fortune reviewed the most recent Zillow data available as of Oct. 9.

Fixed-rate vs. adjustable-rate mortgages

Fixed-rate home loans represent roughly 92% of all U.S. mortgages—a testament to their reliability. Unlike ARMs, which allow interest rate changes after an initial period, fixed-rate loans guarantee one rate for the life of the mortgage. This predictability makes them appealing to many.

Still, ARMs may offer benefits in certain situations. After all, about 8% of borrowers opt for them over the more common fixed-rate loans.

When you might consider an adjustable-rate mortgage

Three types of buyers may favor ARMs:

  • Short-term homeowners: If relocation is likely within a few years, ARMs may offer savings through low introductory rates while moving before future adjustments become a concern. But, weigh carefully if you’ll actually be able to move out of your starter home as quickly as you intend. 
  • Property investors: Investors may leverage ARMs for a low initial rate, then may flip the home before adjustment periods kick in or may increase rent during periods of higher interest rates if they’re renting out the property. 
  • Buyers facing elevated interest levels: During high-interest periods, ARMs might offer a lower rate during the introductory time frame and even the potential for rate reductions down the line if market conditions improve.

Pro tip

Saving up for a down payment? Make sure you have a high-yield savings account.

How adjustable-rate mortgages work

ARMs generally start with low fixed interest periods lasting three to 10 years before shifting into adjustment periods. During the adjustments, your rate will be influenced by factors including:

  • Benchmark indices like SOFR: Your ARM will typically be tied to a benchmark, commonly SOFR. This rate reflects the cost for banks to borrow cash overnight. The U.S. Treasury publishes a new SOFR each morning.
  • Margins added by lenders: Margins are fixed percentages, which can often range between 2% and 3.5%, added by lenders to whatever benchmark is used for your ARM. The benchmark plus the margin helps determine your mortgage rate. These can vary based on things like your specific lender and your credit profile. 
  • Rate caps: Adjustment caps limit how much your rate can increase during specific intervals or over the loan’s lifetime. These can include initial, subsequent, and lifetime caps.

Common ARM structures include the 5/1 ARM (five years fixed, then annual adjustments) and the 10/6 ARM (10 years fixed, then adjustments every six months). Other structures include 3/1 ARMs, 7/1 ARMs and 10/1 ARMs. 

Learn more:Why the Secured Overnight Financing Rate might matter for your mortgage.

Refinancing from an ARM to a fixed-rate mortgage

Sometimes, circumstances change. Maybe you bought a home intending to flip it, then realized it made a lot of sense to keep as your primary residence. Or maybe you bought a starter home and then realized you wouldn’t be moving as quickly as intended. In the latter case, you’re not alone. A large chunk of Millennial and Gen Z homeowners are sticking it out with their starter homes because they can’t afford to upgrade.

In such situations, it might make sense to refinance from an ARM to a fixed-rate mortgage. The process for doing this is much the same as refinancing from one fixed-rate loan to another. You’ll shop around with various lenders, submit the documents required for the application, and pay off your existing loan in full with the new one.

Pros and cons of adjustable-rate mortgages

As with any mortgage type, ARMs have benefits and drawbacks. Evaluate them carefully with a trusted loan officer to decide if this is the best type of mortgage for your situation. To get you started, a few key points are outlined below.

Pros

  • Potential for a lower introductory rate compared with fixed-rate loans.
  • Chance for reduced monthly payments if the market improves and rates go down.
  • Some borrowers might find qualifications less stringent on ARMs.

Cons

  • Monthly payments can increase significantly after the fixed period ends.
  • Comparing offers is likely to be more complicated than with fixed-rate loans.
  • There’s less predictability and stability compared to fixed-rate mortgages.
Fortune Global Forum returns Oct. 26–27, 2025 in Riyadh. CEOs and global leaders will gather for a dynamic, invitation-only event shaping the future of business. Apply for an invitation.

About the Author

Glen Luke Flanagan
By Glen Luke FlanaganStaff Editor, Personal Finance
LinkedIn icon

Glen is an 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.

See full bioRight Arrow Button Icon
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • Ceo Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.