Compare Today’s 7/1 ARM Mortgage Rates

Compare Today's 7-Year ARM Rates

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Trends and Insights

Mortgage rate trends (APR)

NerdWallet’s mortgage rate insight

6.607%

30-year fixed-rate

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On Thursday, December 12, 2024, the average APR on a 30-year fixed-rate mortgage remained at 6.607%. The average APR on a 15-year fixed-rate mortgage remained at 5.765% and the average APR for a 5-year adjustable-rate mortgage (ARM) remained at 7.461%, according to rates provided to NerdWallet by Zillow. The 30-year fixed-rate mortgage is 1 basis point higher than one week ago and 35 basis points lower 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

Accurate as of 12/12/2024

Product	Interest Rate	APR
30-year fixed-rate	6.532%	6.607%
20-year fixed-rate	6.346%	6.438%
15-year fixed-rate	5.648%	5.765%
10-year fixed-rate	5.455%	5.625%
7-year ARM	6.999%	7.380%
5-year ARM	7.098%	7.461%
3-year ARM	8.125%	8.355%
30-year fixed-rate FHA	5.500%	6.284%
30-year fixed-rate VA	5.685%	6.057%

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

A Beginner’s Guide to 7-Year ARMs

Last updated on December 14, 2023

Written by

Holden Lewis

Senior Writer/Spokesperson

Reviewed by

Michelle Blackford

Written by

Holden Lewis

Senior Writer/Spokesperson

Reviewed by

Michelle Blackford

What is a 7-year ARM?

A 7-year adjustable-rate mortgage is an adjustable-rate mortgage (ARM) with an interest rate that is initially fixed for seven years. After seven years are up, the interest rate can change periodically with the broader market.

The initial fixed interest rate is typically at a low introductory level. After the initial fixed period, the rate can adjust up or down every six months. The rate adjustments are tied to a benchmark interest rate index. In most cases, the index is the secured overnight financing rate, or SOFR. This rate tends to rise when the economy is expanding and to fall when the economy weakens.

The 7-year ARM's name may vary by lender. Some institutions call it the 7/6 ARM, where the "7" refers to the starting fixed-rate period in years, and the "6" refers to the number of months between rate adjustments. It may sometimes be called the 7y/6m or 7yr/6mo ARM. It used to be called the 7/1 ARM because the rate was adjusted annually before regulatory changes were made.

7-year ARM mortgage rates

NerdWallet’s mortgage comparison tool can help you find competitive 7-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 7-year ARM

A 7-year ARM makes sense if you plan to refinance your mortgage or sell your house before the introductory rate expires. You might be able to qualify for a larger loan because of the low introductory rate. Keep in mind that the interest rate and monthly payment could increase if the index rate rises anytime after the first seven 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.
Margin: A number of percentage points that the lender adds to the index to arrive at the interest rate you'll pay during a six-month period. For example, an index rate of 5% plus a margin of 2.75 percentage points would mean your interest rate would be 7.75%.
Rate cap: The maximum amount your loan’s interest rate can go up or down the first time it adjusts and each time thereafter.