30 year fixed or 5/6 ARM in current market May 2024 market conditions

[Jim Doyle]

Looking to purchase my first home and was initially going to go the traditional fixed rate mortgage without buying down points with the assumption rates will go down in the next year or 2 and I will just refinance. I was getting interest rates that were slightly over 7% for a fixed, and I recently learned about the 5/6 ARM through my local credit bureau who I had financed my car through many years back. They came in a 6.375%, no loan origination fee, etc. and said I can refinance at anytime with no prepayment penalties, seems almost too good to be true. Is there anything I'm missing? If I will refinance before the 5 year fixed period expires, without any penalties, I'm having a hard time understanding why I'd want to go forward with a fixed rate currently. Any thoughts on the below? This quote is as of May 2024.