With interest rates as well as house prices on the rise, the lower initial value of an adjustable rate mortgage (ARM) may look appealing. And the numbers say more people agree, as the percent of loan applications for ARMs has increased from 5% to 6.7% since January. If you’re considering a loan, remember an ARM rate, while initially lower than that of a 30-year fixed-rate mortgage, is only fixed for a short period. This is usually 5 years, and it can be between 3 and 10 years. After that, it could change every year, possibly sooner. Even though an ARM rate can decrease or even stay the same, with interest rates still going up, you could easily end up with a higher rate. Currently, the average 30-year fixed rate is at 4.64%, up from 4.23%, and the average for the most popular ARM rate is initially 3.85%, up from 3.5%. Buyers should be sure to consider all the details of a mortgage loan, not only the initial rate.