Approximately 150,000 U.S. borrowers with adjustable-rate mortgages will see their rates reset this year, followed by 186,000 in 2027 and 155,000 in 2028, according to ICE Mortgage Technology data. Monthly payments could increase by hundreds of dollars or even exceed $1,000 in some cases: homeowners with 7-year ARMs originated in 2019 (median initial rate of 3%, median unpaid balance of $548,000) face a median adjusted rate of 6.06%, translating into a monthly payment increase of $1,080. The total outstanding ARM volume stands at 3.1 million, the highest level in 5.5 years, representing 5.6% of the 55.4 million active mortgages in the United States. Borrowers facing these adjustments can either keep their current loan or refinance, which involves closing costs typically ranging from 2% to 5% of the loan amount.
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