Track today's mortgage interest rates and historical trends.
FHA loan rates are influenced by various economic factors and typically differ from conventional mortgage rates. The rates shown below are national averages updated daily and are provided for informational purposes only. Your actual rate will depend on your credit score, loan amount, down payment, and other factors.
Last Updated: April 19, 2025
FHA loans typically offer competitive interest rates compared to conventional loans, especially for borrowers with lower credit scores. Below is a comparison of current average rates for FHA and conventional loans.
| Loan Type | 30-Year Fixed | 15-Year Fixed | 5/1 ARM |
|---|---|---|---|
| FHA Loan | 5.25% | 4.75% | 4.50% |
| Conventional Loan | 5.50% | 4.85% | 4.65% |
| VA Loan | 5.15% | 4.65% | 4.40% |
The chart below shows the trend of 30-year fixed FHA loan rates over the past two years. Understanding these trends can help you make informed decisions about when to lock in your rate.
Several factors influence the interest rate you'll receive on an FHA loan:
While FHA loans have more lenient credit requirements than conventional loans, your credit score still affects your interest rate. Borrowers with higher credit scores typically receive lower rates.
| Credit Score Range | Typical Rate Adjustment |
|---|---|
| 760+ | Base rate |
| 700-759 | +0.10% to +0.25% |
| 660-699 | +0.25% to +0.50% |
| 620-659 | +0.50% to +0.75% |
| 580-619 | +0.75% to +1.00% |
| 500-579 | +1.00% to +1.50% |
While FHA loans require a minimum down payment of 3.5% (with a credit score of 580 or higher), making a larger down payment can sometimes result in a lower interest rate. This is because a larger down payment reduces the lender's risk.
The length of your loan affects your interest rate. Shorter-term loans (like 15-year mortgages) typically have lower interest rates than longer-term loans (like 30-year mortgages), but they come with higher monthly payments.
The size of your loan can affect your interest rate. Larger loans (jumbo loans) often come with higher interest rates, while smaller loans may qualify for better rates.
Interest rates can vary by state and even by county due to differences in foreclosure laws, property values, and other local factors.
Broader economic factors, such as inflation, Federal Reserve policy, and the overall health of the economy, significantly impact mortgage rates.
Follow these tips to secure the most favorable interest rate on your FHA loan:
Even though FHA loans have lower credit requirements, a higher credit score will help you qualify for a better interest rate. Take steps to improve your credit before applying:
While FHA loans require just 3.5% down (with a credit score of 580+), making a larger down payment can sometimes help you secure a lower interest rate.
Different lenders offer different rates and fees. Contact multiple FHA-approved lenders to compare offers. Even a small difference in interest rate can save you thousands over the life of your loan.
Mortgage points are fees you can pay at closing to lower your interest rate. Each point typically costs 1% of your loan amount and reduces your rate by about 0.25%. This can be a good strategy if you plan to stay in your home for a long time.
Once you find a favorable rate, consider locking it in. Rate locks typically last 30-60 days and protect you from rate increases during that period.
Lenders prefer borrowers with stable employment. Try to avoid changing jobs during the mortgage application process.
When comparing loan offers, it's essential to understand the difference between the interest rate and the Annual Percentage Rate (APR):
The interest rate is the percentage of the loan amount that you pay the lender for borrowing the money. It's used to calculate your monthly principal and interest payment.
The APR includes the interest rate plus other costs such as mortgage insurance, discount points, origination fees, and other charges. It represents the true cost of the loan and is always higher than the interest rate.
When comparing loan offers, look at both the interest rate (which affects your monthly payment) and the APR (which reflects the total cost of the loan).
FHA loan rates are often slightly lower than conventional loan rates, especially for borrowers with lower credit scores. However, the total cost of an FHA loan may be higher due to mortgage insurance premiums.
FHA loan rates can change daily based on market conditions. Significant economic news, Federal Reserve announcements, and changes in inflation can all cause rates to fluctuate.
Yes, you can refinance your FHA loan through an FHA Streamline Refinance if rates drop significantly after you get your loan. This process is typically faster and requires less documentation than your original FHA loan.
No, FHA loans do not have prepayment penalties. You can make extra payments or pay off your loan early without incurring additional fees.
Fixed-rate FHA loans maintain the same interest rate for the entire loan term, providing payment stability. Adjustable-rate FHA loans (ARMs) have an interest rate that can change after an initial fixed period, potentially resulting in lower initial rates but less predictability long-term.
Now that you understand current FHA loan rates, use our calculators to estimate your monthly payments and determine how much house you can afford.
Now that you understand current FHA loan rates, use our calculators to estimate your monthly payments, determine how much house you can afford, and explore your options.
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