With mortgage rates back around 7%, buyers are once again looking beyond the traditional 30-year fixed mortgage.

One option getting more attention? Adjustable-rate mortgages, or ARMs.

According to recent Homes.com reporting, ARMs now account for nearly 10% of mortgage applications. One reason is pretty simple: they can offer a lower initial interest rate than a traditional fixed-rate mortgage.

That difference can matter when you're trying to manage a monthly payment.

So, what exactly is an ARM?

An adjustable-rate mortgage typically gives you a fixed interest rate for an initial period — often five, seven or ten years. After that period, the rate can adjust based on the terms of the loan.

That means an ARM can potentially lower your payment upfront, but there is also additional risk. If rates are higher when the adjustment period begins, your payment could increase.

And that's exactly why I don't think buyers should automatically ask: "What's today's mortgage rate?"

A better question is: "Which loan structure makes the most sense for what I'm trying to accomplish?"

This is where having the right team matters

Not every buyer needs the same mortgage.

If you're planning to stay in a home for 20 years, your financing strategy may look very different from someone who expects to move again in five or six years.

An ARM might make sense for certain buyers. A conventional fixed-rate mortgage might be better for others. FHA, VA, down-payment assistance, seller-paid closing costs or a temporary/permanent rate buydown can also change the numbers.

The goal isn't to find the loan with the coolest name. It's to find the combination of home price, financing, cash needed at closing and monthly payment that works for you.

That's a big part of how I approach buying a home with my clients in Greensboro and the Triad. I want a good local lender involved early so we can compare options instead of assuming a 30-year fixed mortgage is the only answer.

More choices can create opportunity

There's another piece of the current market buyers shouldn't overlook: inventory.

Homes.com reported that the number of homes for sale nationally increased 5.4% in August compared with August 2025, even as higher borrowing costs continued to slow buyer activity.

For buyers who can make the numbers work, that can mean more choices and potentially more room to negotiate than we saw during the ultra-competitive market a few years ago.

Higher rates aren't fun. But they don't automatically mean you should sit on the sidelines. They mean strategy matters more.

If you're thinking about buying a home in Greensboro, Summerfield, Oak Ridge, High Point or elsewhere in the Triad, let's look at the entire picture — the house, the price, the financing and the negotiation.

Source: Homes.com — More homebuyers turn to adjustable-rate mortgages