Adjustable-rate mortgages have been dead in the water for many months as low interest rates pushed borrowers to cheaper fixed-rate mortgages.
But this week, the average rate of a 5/1 adjustable-rate mortgage (ARM) fell below the 30-year fixed-rate benchmark for the first time since mid-June. The ARM rate came in at 3.01 percent, two basis points lower than the 30-year fixed.