6.853% APR

Compare today's 5-year ARM rates

Written by Holden Lewis
November 17, 2023

Some or all of the mortgage lenders featured on our site are advertising partners of NerdWallet, but this does not influence our evaluations, lender star ratings or the order in which lenders are listed on the page. Our opinions are our own. Here is a list of our partners.

About These Rates: The lenders whose rates appear on this table are NerdWallet’s advertising partners. NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a lender’s site. The terms advertised here are not offers and do not bind any lender. The rates shown here are retrieved via the Mortech rate engine and are subject to change. These rates do not include taxes, fees, and insurance. Your actual rate and loan terms will be determined by the partner’s assessment of your creditworthiness and other factors. Any potential savings figures are estimates based on the information provided by you and our advertising partners.

Trends and insights

Mortgage rate trends (APR)

NerdWallet’s mortgage rate insight

5-year ARM

On Monday, December 4th, 2023, the average APR on a 30-year fixed-rate mortgage fell 13 basis points to 6.853%. The average APR on a 15-year fixed-rate mortgage rose 7 basis points to 6.179% and the average APR for a 5-year adjustable-rate mortgage (ARM) fell 6 basis points to 7.949%, according to rates provided to NerdWallet by Zillow. The 30-year fixed-rate mortgage is 39 basis points lower than one week ago and 65 basis points higher than one year ago.

A basis point is one one-hundredth of one percent. Rates are expressed as annual percentage rate, or APR.

Current mortgage and refinance rates

ProductInterest rateAPR
30-year fixed-rate6.772%6.853%
20-year fixed-rate6.263%6.348%
15-year fixed-rate6.045%6.179%
10-year fixed-rate5.707%5.885%
7-year ARM7.249%7.846%
5-year ARM7.107%7.949%
3-year ARM6.125%7.204%
30-year fixed-rate FHA5.860%6.672%
30-year fixed-rate VA5.875%6.136%

Data source: ©Zillow, Inc. 2006 – 2021. Use is subject to the Terms of Use

What is a 5-year ARM?

A 5-year ARM is an adjustable-rate mortgage with an interest rate that stays the same for the first five years. After five years are up, the interest rate can change periodically with the broader market.

A 5-year ARM typically begins with a lower introductory rate than a fixed-rate loan has.

After the five years are over, the rate can adjust up or down every six months. The rate adjustments are based on a benchmark index, which in most cases is the secured overnight financing rate (SOFR). The benchmark rate tends to rise when the economy is strong and fall when the economy weakens.

Different lenders may refer to the 5-year ARM by different names. It's sometimes called the 5/6 ARM, where the "5" refers to the starting fixed-rate period in years and the "6" refers to how often in months the rate is adjusted afterward. It's sometimes called the 5y/6m or 5yr/6mo ARM. It used to be called the 5/1 ARM

Rocket Mortgage. 5/1 ARM Loan: Everything You Need to Know. Accessed Nov 3, 2023.
because it was adjusted annually before regulatory changes were made.

5-year ARM mortgage rates

NerdWallet’s mortgage comparison tool can help you find competitive 5-year ARM rates today, whether you are buying a home or refinancing. In the filters above, enter details about the loan you’re looking for, and you can see rate quotes without providing personal information.

When to consider a 5-year ARM

A 5-year ARM makes sense if you expect to refinance your mortgage or sell your house before the introductory rate expires. You may be able to qualify for a larger loan because of the ARM's low introductory rate. Note that the interest rate and monthly payment could climb substantially if the index rate rises anytime after the first five years are up.

ARM glossary

  • Index: The benchmark rate that, when added to the margin, yields each six-month period's interest rate. Most ARMs use the 30-day average secured overnight financing rate (SOFR), which reflects market conditions.

    Freddie Mac. SOFR-Indexed ARMs. Accessed Nov 3, 2023.

  • Margin: A number of percentage points that the lender adds to the index to arrive at the interest rate that you'll pay during a six-month period. For example, an index rate of 5.3% plus a margin of 2.75 percentage points would mean your interest rate would be 8.05%.

  • Rate cap: The maximum amount your loan’s interest rate can go up or down the first time it adjusts and each time thereafter.

Learn more about adjustable-rate mortgages

About the author: Holden is NerdWallet's authority on mortgages and real estate. He has reported on mortgages since 2001, winning multiple awards.

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