5/1 Adjustable-Rate Mortgage (ARM) vs 2-Year Treasury Yield
5/1 Adjustable-Rate Mortgage (ARM) is currently 6.2% (down -0.1%). 2-Year Treasury Yield is currently 3.7% (down -0.3%).
| Metric | 5/1 Adjustable-Rate Mortgage (ARM) | 2-Year Treasury Yield |
|---|---|---|
| Current value | 6.2% | 3.7% |
| Previous reading | 6.22% | 3.99% |
| Change | -0.1% | -0.3% |
| Trend | down | down |
| Frequency | Weekly | Daily |
| Source | Freddie Mac | U.S. Treasury |
| Last updated | 2026-04-03 | 2026-04-04 |
| Category | rates | rates |
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.
What 2-Year Treasury Yield measures
The 2-year Treasury yield reflects market expectations for short-term interest rates over the next two years. It is the most sensitive government bond to Federal Reserve policy changes.
The 2-year yield at 3.71% — well below the current fed funds rate of 4.50% — signals that markets expect the Fed to cut rates. The wider this gap, the more aggressively markets expect easing. For CFOs, short-term borrowing costs may decline sooner than long-term rates, favoring shorter-duration financing strategies.
Frequently asked
5/1 Adjustable-Rate Mortgage (ARM) is currently 6.2%, down -0.1% from the previous reading. Source: Freddie Mac, updated weekly.
2-Year Treasury Yield is currently 3.7%, down -0.3% from the previous reading. Source: U.S. Treasury, updated daily.
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 The 2-year yield at 3.71% — well below the current fed funds rate of 4.50% — signals that markets expect the Fed to cut rates. The wider this gap, the more aggressively markets expect easing. For CFOs