Average Hourly Earnings Growth vs 5/1 Adjustable-Rate Mortgage (ARM)
Average Hourly Earnings Growth is currently 3.8% (down -0.2%). 5/1 Adjustable-Rate Mortgage (ARM) is currently 6.2% (down -0.1%).
| Metric | Average Hourly Earnings Growth | 5/1 Adjustable-Rate Mortgage (ARM) |
|---|---|---|
| Current value | 3.8% | 6.2% |
| Previous reading | 4% | 6.22% |
| Change | -0.2% | -0.1% |
| Trend | down | down |
| Frequency | Monthly | Weekly |
| Source | Bureau of Labor Statistics | Freddie Mac |
| Last updated | 2026-04-04 | 2026-04-03 |
| Category | employment | rates |
What Average Hourly Earnings Growth measures
Average hourly earnings measures the year-over-year percentage change in wages for all private-sector employees. It is a key indicator of labor cost pressures and consumer spending power.
Wage growth at 3.8% year-over-year outpaces current inflation, meaning workers are gaining real purchasing power. For executives, this signals continued pressure on labor budgets — compensation packages must grow to retain talent. However, wage growth moderating from 4%+ suggests the worst of the post-pandemic wage spiral may be easing.
What 5/1 Adjustable-Rate Mortgage (ARM) measures
The 5/1 adjustable-rate mortgage (ARM) offers a fixed rate for the first 5 years, then adjusts annually based on a benchmark index plus a margin. ARMs typically start with a lower rate than 30-year fixed mortgages, making them attractive for buyers who plan to sell or refinance within 5-7 years.
At 6.17%, the 5/1 ARM offers a modest discount to the 30-year fixed rate of 6.64%. When this spread is narrow (under 0.5%), the risk-reward of choosing an ARM is less compelling — you take on rate adjustment risk for relatively little savings. A wider spread (1%+) makes ARMs more attractive. For real estate investors and corporate relocation programs, ARMs can reduce carrying costs on properties held for short periods.
Frequently asked
Average Hourly Earnings Growth is currently 3.8%, down -0.2% from the previous reading. Source: Bureau of Labor Statistics, updated monthly.
5/1 Adjustable-Rate Mortgage (ARM) is currently 6.2%, down -0.1% from the previous reading. Source: Freddie Mac, updated weekly.
Wage growth at 3.8% year-over-year outpaces current inflation, meaning workers are gaining real purchasing power. For executives, this signals continued pressure on labor budgets — compensation packag At 6.17%, the 5/1 ARM offers a modest discount to the 30-year fixed rate of 6.64%. When this spread is narrow (under 0.5%), the risk-reward of choosing an ARM is less compelling — you take on rate adj