ARM vs. Fixed Rates Today: How Big Is the Gap?

The gap between ARM and fixed mortgage rates is about 1 percentage point today. As of November 2026, the national average conventional 5-year ARM rate was 6.222% (6.791% APR) and the 30-year fixed rate was 7.201% (7.270% APR) on Nov. 10, a difference of 0.979 points. That is wider than the 0.387-point gap on Aug. 4, 2026. On a $400,000 loan, it works out to $259.83 less per month in principal and interest for the first five years. These are national averages; your rates depend on your credit, down payment, property and lender.

In this article (Skip to...)

• ARM vs. fixed mortgage rates today (2026)
• How much an ARM saves per month
• How the ARM vs. fixed gap has moved since August 2026
• The Mortgage Reports data: The ARM-to-fixed gap across 2026
• How ARM caps and adjustments work
• When an ARM breaks even vs. a fixed rate
• How we got these numbers
• ARM vs. fixed rate FAQ

ARM vs. fixed mortgage rates today (2026)

Source: Mortech national averages, as of Nov. 10, 2026.

Note the APR gap is about half the rate gap. An ARM’s APR assumes the rate will adjust after the fixed period, so it reflects some of the expected cost later in the loan. The live average 30-year fixed rate, updated daily, is 7.227 (7.305 APR) as of November 11, 2026. There is no live daily ARM figure on this page, so the ARM numbers here are dated Nov. 10, 2026. For a longer view of fixed rates, see our 30-year mortgage rates chart.

How much an ARM saves per month

These are principal and interest only, using a 30-year (360-month) amortization for both loans. Taxes, insurance and mortgage insurance are extra. On Nov. 10, 2026, the average APR was 7.270% for the 30-year fixed and 6.791% for the 5-year ARM. These are examples, not offers.

The math: monthly payment = P × [i(1 + i)ⁿ] ÷ [(1 + i)ⁿ − 1], where P is the loan amount, i is the annual rate divided by 12, and n is 360 payments. For $400,000 at 7.201%, i = 0.07201 ÷ 12 = 0.0060008, and the formula gives $2,715.42. At 6.222%, i = 0.005185, and the payment is $2,455.59.

How the ARM vs. fixed gap has moved since August 2026

Source: Mortech national averages for conventional purchase loans, Tuesdays, Aug. 4 to Nov. 10, 2026.

The gap widened from under 0.5 points in August to about 0.7 to 1.1 points from mid-September on, averaging 0.692 points over the 15 weeks. Fixed rates climbed to a high of 7.550% on Oct. 13 before easing, while the ARM average moved more from week to week, from a low of 5.911% on Sept. 15 to a high of 6.818% on Oct. 20. Because the ARM series is choppy, a single week’s gap can overstate or understate the typical spread.

The Mortgage Reports data: The ARM-to-fixed gap across 2026

From Jan. 1 to Nov. 10, 2026, the average 5-year ARM rate averaged 6.014% and the 30-year fixed averaged 6.715%, a gap of about 0.70 percentage points, according to the Mortech national averages The Mortgage Reports tracks daily. Today’s gap of 0.979 points is wider than that year-to-date average.

Source: Mortech national average rates for purchase loans, tracked daily by The Mortgage Reports, Jan. 1 to Nov. 10, 2026.

How ARM caps and adjustments work

A 5-year ARM keeps the same rate for the first five years, then adjusts. Freddie Mac’s standard 5-year SOFR ARM, called a 5/6, adjusts every six months after the fixed period and is tied to the 30-day average SOFR plus a margin, according to its SOFR ARM fact sheet. Caps limit how much the rate can move:

• Initial cap: the most the rate can change at the first adjustment. The CFPB says this is commonly 2% or 5%.
• Subsequent cap: the most it can change at each later adjustment, commonly 1% or 2%.
• Lifetime cap: the most it can rise over the life of the loan, commonly 5%.

Freddie Mac’s 5/6 uses 2/1/5 caps. Starting from 6.222%, that means the rate could reach no higher than 8.222% at the first adjustment and 11.222% over the life of the loan. Lenders must also plan for that: Fannie Mae’s Selling Guide has lenders qualify 5-year ARM borrowers at the greater of the fully indexed rate or the maximum rate possible in the first five years, which DU sets at the note rate plus 2%. See how ARM rates work for more on 3/1, 5/1, 7/1 and 10/1 structures. Sources: CFPB, Freddie Mac.

When an ARM breaks even vs. a fixed rate

An ARM comes out ahead as long as its lower early payments outweigh any higher payments later. We compared total cost to date, meaning all payments made plus the remaining loan balance, month by month.

Assumptions, for illustration only: a $400,000 loan; a 30-year fixed rate of 7.201% (7.270% APR); a 5-year ARM starting at 6.222% (6.791% APR) with 2/1/5 caps that adjusts every six months after year five; the payment is recalculated on the remaining balance at each change; no closing cost differences, refinancing or extra payments.

At the end of year five, the ARM borrower in this example is about $19,690 ahead: $15,590 in lower payments plus a slightly smaller balance. In the worst case, that lead is gone a little over two years after the first adjustment. If you sell or refinance before the fixed period ends, the reset never applies, though refinancing has its own costs and depends on rates and your finances at the time.

How we got these numbers

Rates are Mortech national averages for conventional purchase loans, as of Nov. 10, 2026, and the weekly series uses each Tuesday from Aug. 4 to Nov. 10, 2026. We calculated payments with the standard amortization formula above and ran the break-even scenarios month by month. Cap rules come from the CFPB, Freddie Mac’s SOFR ARM fact sheet and Fannie Mae’s Selling Guide. Our rate source does not include a 7-year ARM, so this page does not show one. Historical highs, lows and averages are interest rates, not APRs.

ARM vs. fixed rate FAQ

Sources: Mortech national average rates (Nov. 10, 2026, and weekly Aug. 4 to Nov. 10, 2026), CFPB: ARM rate caps, Freddie Mac SOFR ARM At-A-Glance, Fannie Mae Selling Guide B3-6-04.