About 150,000 ARM Borrowers Face First Rate Reset This Year; Median Payment on 2019 Seven-Year Loans Seen Jumping $1,080
About 150,000 U.S. homeowners with adjustable-rate mortgages (ARMs) are scheduled to see their interest rates adjust for the first time this year, according to data from ICE Mortgage Technology reported by Realtor.com on October 19. Another 186,000 borrowers face a first adjustment in 2027 and 155,000 in 2028.
For seven-year ARMs originated in 2019, ICE data show a median initial rate of 3% and a median unpaid balance of $548,000. Based on current rates and the caps on those loans, the median adjusted rate would be 6.06%, lifting the median monthly payment by $1,080. By comparison, borrowers who took 30-year fixed-rate loans in 2019 locked in an average rate of 3.94%, according to Freddie Mac.
ARMs have been gaining share in recent months. The Mortgage Bankers Association put ARMs at 10.3% of mortgage applications in late September, up from 7% at the start of the year and the highest share since October 2025. Freddie Mac put the 30-year fixed rate at 7.40% on October 15, while Bankrate's survey of large lenders showed average APRs of 6.57% for 5/1 ARMs and 6.95% for 10/1 ARMs.
Not every resetting borrower will pay more. Three-year ARMs originated in 2023 carry a median initial rate of 8.38% and a median unpaid balance of $136,000, ICE data show; their median rate is poised to fall to 7.71%, cutting the monthly payment by about $124. (GSM, via Realtor.com)
Published by GSM · USA (original Chinese edition)
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