ARM demand hits near four-year high
As fixed rates near their highest level of 2026, brokers are fielding more inquiries from borrowers seeking a lower entry-point rate without leaving the market altogether.
Joel Kan, vice president and deputy chief economist at the Mortgage Bankers Association, says higher rates are dampening both refinance and purchase activity, with first-time and FHA borrowers feeling the pressure most. https://t.co/J6NsbEmSbF
— Mortgage Professional America Magazine (@MPAMagazineUS) October 7, 2026
System exposure remains contained
Despite the demand shift, systemic risk looks limited. ICE’s data show 3.1 million active ARMs outstanding, the most in 5.5 years, but they represent just 5.6% of the roughly 55.4 million active mortgages in the US.
More than 90% of ARMs originated since 2022 remain in their introductory fixed-rate periods, and the number currently operating as adjustable is at its lowest level in more than 25 years.
“ARMs are becoming more attractive to borrowers looking for relief from today’s higher fixed rates, but the overall market exposure to adjustable payments remains relatively limited,” said Andy Walden, head of Mortgage and Housing Market Research at ICE.
“And because most newer ARMs are still in their introductory periods, only about a third of active ARMs have begun adjusting.”
