Sample late-April interest rates were 2.65% for a five-year hybrid ARM, 2.85% for a seven-year hybrid ARM and 3.24% for a 10-year hybrid ARM, he added.

WSJ: Fixed-Rate Jumbo Mortgages Make a Comeback

With a five-year hybrid ARM, for example, the borrower will either pay off the loan at the end of the five-year period, allowing the bank to reinvest its money, or will continue to pay back the loan at a fixed rate that is higher.

WSJ: Fixed-Rate Jumbo Mortgages Make a Comeback

Five-year Treasury-indexed hybrid adjustable-rate mortgages, or ARM, averaged 2.88%, up from 2.85% yet below 3.77% of a year ago.

WSJ: Mortgage Rates End Year Under 4%