Updated May 2026 · Freddie Mac
Rates Indicator
5/1 Adjustable-Rate Mortgage (ARM)
5/1 Adjustable-Rate Mortgage (ARM) is a interest rate and yield indicator central to monetary policy and corporate borrowing sourced from Freddie Mac, updated weekly. Next release: 2026-04-10.
Historical Trend
| Date | Value |
|---|---|
| 2026-04-03 | 6.2% |
| 2026-03-27 | 6.2% |
| 2026-03-06 | 6.2% |
| 2026-02-06 | 6.4% |
| 2026-01-30 | 6.5% |
| 2026-01-02 | 6.5% |
| 2025-12-05 | 6.3% |
| 2025-11-06 | 6.4% |
| 2025-10-02 | 5.6% |
Reading the Current Print
At 6.2%, the current reading sits in the lower portion of the recent historical range for this series. That is depressed relative to recent norms; the question for an operator is whether the soft reading reflects a near-term cyclical low or the start of a more persistent shift.
5/1 ARM moved from 6.2% to 6.2% since the prior weekly release — a modest move lower of -0.1%. Downward moves on rates indicators usually carry directional information about the cycle; pair this reading with related series before drawing strong conclusions.
Weekly publication makes this one of the more timely cyclical signals available. Smooth the data with a four-week moving average to filter out single-week noise; major reversals usually show up as several consecutive weekly prints in the new direction.
What This Means for Business
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.
For deeper context on how 5/1 ARM fits into the broader macro picture, see the learn library; for live cross-checks against related series, browse the full indicators dashboard; for tools that translate the reading into business outputs (DCF discount rates, runway projections), see the calculators page. Authoritative external context is available at the Federal Reserve’s FRED database, the U.S. Bureau of Labor Statistics, and the SEC EDGAR system for company-level filings.
About 5/1 ARM
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.
Methodology
Freddie Mac surveys lenders weekly. The 5/1 ARM rate reflects the initial fixed-rate period offered to well-qualified borrowers. After the 5-year fixed period, the rate adjusts annually based on the Secured Overnight Financing Rate (SOFR) index plus a lender margin, subject to periodic and lifetime caps.
The series is published by Freddie Mac under series identifier MORTGAGE5US. ExecBolt does not estimate, model, or interpolate this value — every reading on this page is pulled directly from the publishing agency’s primary release. For full sourcing and citation guidance, see the methodology page.
Related Indicators
Frequently Asked Questions
What is 5/1 Adjustable-Rate Mortgage (ARM) right now?
5/1 Adjustable-Rate Mortgage (ARM) is currently 6.2%, down -0.1% from the previous weekly reading. Source: Freddie Mac, series MORTGAGE5US, last updated 2026-04-03.
How is 5/1 ARM calculated?
Freddie Mac surveys lenders weekly. The 5/1 ARM rate reflects the initial fixed-rate period offered to well-qualified borrowers. After the 5-year fixed period, the rate adjusts annually based on the Secured Overnight Financing Rate (SOFR) index plus a lender margin, subject to periodic and lifetime caps.
Where can I verify this number?
5/1 Adjustable-Rate Mortgage (ARM) is published by Freddie Mac. The primary release is available at https://www.freddiemac.com/pmms; the Federal Reserve's FRED database hosts the historical series and provides API access for programmatic verification.
What happens when a 5/1 ARM adjusts?
After the initial 5-year fixed period, the rate adjusts once per year based on the SOFR index plus a margin (typically 2.75%). Most ARMs have caps: a 2% cap on the first adjustment, a 2% cap on each subsequent annual adjustment, and a 5% lifetime cap above the initial rate. So if your initial rate is 6.17%, the rate can never exceed 11.17% over the life of the loan.
When does a 5/1 ARM make sense?
A 5/1 ARM makes sense when you plan to sell or refinance within 5-7 years, when the rate spread between the ARM and 30-year fixed is large (1%+), or when you expect interest rates to decline and want the ARM to adjust downward. Corporate relocations, military families, and real estate investors are common ARM users. If you plan to stay in the home long-term, a fixed-rate mortgage provides more certainty.