Mortgage rates recently dropped below 6% but rebounded to 6.11%. Adjustable-rate mortgages (ARMs) offer lower initial rates (around 5.3%) compared to 30-year fixed rates (about 6.1%), saving buyers roughly $500 monthly on a $1 million loan. ARMs made up nearly half of mortgages over $1 million by late 2025. They suit buyers planning short-term ownership, as rates adjust after an initial fixed period, potentially increasing payments.