Existing Home Sales (Annualized) vs 5/1 Adjustable-Rate Mortgage (ARM)
Existing Home Sales (Annualized) is currently 4.26M (up +0.2M). 5/1 Adjustable-Rate Mortgage (ARM) is currently 6.2% (down -0.1%).
| Metric | Existing Home Sales (Annualized) | 5/1 Adjustable-Rate Mortgage (ARM) |
|---|---|---|
| Current value | 4.26M | 6.2% |
| Previous reading | 4.08M | 6.22% |
| Change | +0.2M | -0.1% |
| Trend | up | down |
| Frequency | Monthly | Weekly |
| Source | National Association of Realtors | Freddie Mac |
| Last updated | 2026-03-20 | 2026-04-03 |
| Category | housing | rates |
What Existing Home Sales (Annualized) measures
Existing home sales measures the number of completed sales of previously owned homes, expressed as a seasonally adjusted annual rate. It accounts for approximately 85-90% of all home sales in the U.S.
At 4.26 million, existing home sales remain well below the 2021 peak of 6.1 million. The 'lock-in effect' — where homeowners refuse to give up sub-4% mortgages — continues to constrain inventory. For executives, this suppressed transaction volume affects real estate commissions, moving services, home improvement spending, and mortgage origination revenue across the industry.
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
Existing Home Sales (Annualized) is currently 4.26M, up +0.2M from the previous reading. Source: National Association of Realtors, updated monthly.
5/1 Adjustable-Rate Mortgage (ARM) is currently 6.2%, down -0.1% from the previous reading. Source: Freddie Mac, updated weekly.
At 4.26 million, existing home sales remain well below the 2021 peak of 6.1 million. The 'lock-in effect' — where homeowners refuse to give up sub-4% mortgages — continues to constrain inventory. For 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