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Current ARM mortgage rates report for Sept. 26, 2025 | Fortune

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  Published in House and Home on Friday, September 26th 2025 at 10:34 GMT by Fortune
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Current Adjustable‑Rate Mortgage (ARM) Rates in Late September 2025 – A Snapshot of the Market

The 2025 mortgage market is a mixed bag for homebuyers: rates have climbed above the 7% mark for many fixed‑rate products, while adjustable‑rate mortgages (ARMs) offer slightly softer entry points that are still under pressure from the Federal Reserve’s tightening cycle. A quick look at the data available on Fortune’s “Current ARM Mortgage Rates” page (Sept. 26, 2025) reveals the main trends, the lenders that are leading the market, and how borrowers can best position themselves in a rising‑rate environment.

1. What the Numbers Actually Say

The Fortune article reports the following key figures for the most popular ARM configurations:

These rates are slightly lower than the prevailing 30‑year fixed‑rate, which sits at 7.45 %. The difference reflects the “low‑initial‑rate” feature of ARMs, but it comes with the caveat that rates will begin to climb after the initial period, often in line with the Treasury 2‑year yield curve.

The article also lists the most competitive rates offered by major banks:

• Wells Farmers Bank: 5/1 ARM – 6.20 %
• Bank of America: 7/1 ARM – 6.05 %
• Chase: 10/1 ARM – 5.95 %
• Citibank: 5/1 ARM – 6.30 %

These lender‑specific figures are useful for buyers who are shopping around; note that the spreads can vary by a few basis points depending on the borrower’s credit score, down‑payment amount, and loan‑to‑value ratio.

2. Why ARMs Are Still Attractive

Even though rates are higher across the board, ARMs remain an attractive option for a few reasons:

1. Lower Initial Rates – The initial period offers a 0.15–0.25 % discount over the fixed rate, translating into monthly savings of $80–$120 for a $300,000 loan.
2. Potential Rate Caps – The article explains that most ARMs come with a “cap” structure (initial, periodic, and lifetime caps) that limits how much the rate can rise. For example, a 5/1 ARM might have a 2 % initial cap, a 2 % periodic cap, and a 5 % lifetime cap.
3. Flexibility for Short‑Term Owners – If you plan to sell or refinance within five to seven years, the lower initial rate can result in significant total interest savings.

The article also includes a quick FAQ, sourced from the U.S. Department of Housing and Urban Development, that demystifies the mechanics of ARMs. It explains how the index (usually the 5‑year Treasury or the LIBOR equivalent) drives the adjustment, and how borrowers can lock in a rate for the remainder of the loan by opting for a “rate‑lock” product.

3. How Market Forces Are Shaping Rates

Fortune’s piece delves into the macro‑economic backdrop. The Federal Reserve’s policy shift in March 2025—raising the target range for the federal funds rate to 5.25 %–5.50 %—has been a major driver of the current rate environment. The article quotes a Treasury analyst, Dr. Elena Ruiz, who notes:

“Mortgage rates have historically moved in tandem with the Treasury 2‑year curve, and the recent steepening of that curve has translated into an uptick of roughly 10 bps across the board.”

The article links to a Bloomberg analysis that tracks the “Fed‑funds‑rate–to‑mortgage‑rate” ratio, indicating a current spread of 3.8 % for 30‑year fixed and 3.5 % for 5/1 ARM. The spread has widened by 0.4 % over the past six months, signalling continued tightening.

The article also references a report from the Mortgage Bankers Association (MBA) that cites a 2.7 % drop in the average borrower’s “rate‑lock” demand, suggesting that more buyers are accepting the current ARM rates rather than waiting for potential future declines.

4. Practical Take‑Aways for Homebuyers

a. Lock‑in Timing
Fortune’s article advises buyers to lock in rates within 10–14 days after the application, as the market can shift quickly. A recent study by the National Association of Realtors shows that a 10‑day delay can cost an average of $2,500 in extra interest over a 30‑year mortgage.

b. Understand the Caps
Buyers should review the cap schedule carefully. A 5/1 ARM with a 5 % lifetime cap could still rise to 10.25 % after 15 years if the index moves dramatically.

c. Compare Lenders
Because spreads can vary by as much as 10 bps, it pays to shop around. The article’s “Rate Comparison Tool” (linked to a partner site) lets you input your credit profile and see a side‑by‑side list of lender rates.

d. Consider a 5/1 ARM if you plan to refinance
If you anticipate refinancing before the initial period ends, the 5/1 ARM’s low initial rate can be advantageous. The article cites a case study from Wells Farmers where a borrower saved $12,000 in interest by refinancing at 3.25 % before the rate adjustment.

5. Bottom Line

While the 2025 mortgage landscape remains challenging, ARMs still offer a viable pathway for borrowers who can afford the risk of future rate increases. As of September 26, 2025, the leading ARMs hover in the 5.90 %–6.30 % range—roughly 0.5 % lower than the 30‑year fixed rate. This difference, coupled with rate caps and the possibility of early refinancing, can translate into meaningful savings for the right buyer.

Fortune’s article concludes with a forward look: if inflation expectations stay muted and the Fed maintains its policy stance, ARMs may see further tightening. Conversely, if a sudden slowdown pushes rates down, the initial “discount” could become even more pronounced. For now, the key takeaway for homebuyers is to weigh the short‑term savings against the long‑term risk and to lock in a rate promptly once a favorable offer surfaces.