State-Level Adjustable-Rate Mortgage (ARM) Penetration Analysis

Name: State-Level Adjustable-Rate Mortgage (ARM) Penetration Analysis
Creator: Polygon Research
License: https://www.polygonresearch.com/terms
Keywords: Mortgage Banking, Loan Origination, Loan Servicing, Secondary Marketing, Risk Managements, Mortgage-Backed Securities (MBS)

Mortgage Markets

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Data Points

State ARM Penetration CA 2.5% CO 2.4% NJ 2.2% NC 2.2% WA 2.1% UT 1.8% MA 1.7% ID 1.4% NV 1.3% DC 1.3% AZ 1.3% OR 1.2% SC 1.2% MN 1.2% FL 1.1% VA 1.0% IL 1.0% TN 1.0% HI 1.0% DE 0.9% NH 0.9% GA 0.9% WI 0.9% IN 0.8% MD 0.8% TX 0.8% MT 0.8% CT 0.7% AK 0.7% RI 0.7% PA 0.7% KS 0.7% MI 0.6% OH 0.6% ND 0.6% ME 0.5% WY 0.5% NM 0.5% AR 0.5% MO 0.4% WV 0.4% SD 0.4% VT 0.4% NY 0.4% AL 0.4% KY 0.4% IA 0.3% OK 0.3% NE 0.3% MS 0.3% LA 0.2%

Date Published:

November 4, 2025

Date Updated:

November 4, 2025

Chart type:

Bubble Chart

Suggested Citation:

Polygon Research, "Adjustable Rate Mortgage Penetration by State," Polygon Pulse – MBS Pivot, (Accessed November 3, 2025), ARM penetration as a percent of total loans.

Key Insight and Commentary

Adjustable-Rate Mortgage (ARM) penetration, measured as a percentage of total loan originations in each state, is sourced from Polygon Pulse's MBS Pivot.

The most prominent trend is the concentration of ARM usage in states with high property values. California (2.50%), Colorado (2.40%), New Jersey (2.20%), North Carolina (2.20%), Washington (2.10%), Massachusetts (1.70%), and the District of Columbia (1.30%) lead the nation. Conversely, states in the Midwest and South, such as Louisiana (0.20%), Mississippi (0.30%), and Nebraska (0.30%), show minimal ARM penetration.

Explore the live chart here.

ARMs are a niche product, primarily utilized as a tool for affordability in high-cost markets. In states like California and New Jersey, an ARM can provide a significantly lower initial monthly payment, which is a critical qualifier for borrowers at the margin. In lower-cost states, the absolute dollar savings from an ARM on a smaller, conforming loan are less compelling, leading borrowers to prefer the long-term stability of a fixed-rate mortgage.

Use these ARM insights for product strategy and marketing allocation.

From Analysis to Action

This analysis provides a clear blueprint for how to uncover meaningful market dynamics. Its true power is unleashed when you apply this same methodology to your own local markets. Because all real estate is local, this granular approach is essential for crafting precise strategies that effectively address the unique conditions of each community.

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