Current FHA Mortgage Rates - The Weekly Composite

© 2013, Home Buying Institute, all rights reserved

FHA loans are very popular among home buyers these days. They offer several key benefits when compared to a conventional loan, such as a lower down payment and easier qualifications. That's why so many buyers choose this financing option in the first place. On this page, you can view current FHA mortgage rates being offered by lenders in the U.S.

Current FHA Mortgage Rates - Updated Weekly
30-year fixed15-year fixed5-year ARM
4.30%3.34%3.05%
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These rates are based on a borrower with a very good credit score (700+), and a loan amount of $300,000. These rates are updated every Thursday. See full details and disclaimers below.


30-Year FHA Trends, Year to Date

The table below shows how the average rate for a 30-year fixed FHA-insured mortgage has changed since the beginning of this year. This is according to our weekly survey of 35 lenders across the country. This table is updated every Thursday.

30-Year FHA Rate Trends, 2014
Week EndingAverage 30-Year FixedFrom Previous Week
Feb 204.30%+0.02%
Feb 134.28%+0.03%
Feb 64.25%-0.08%
Jan 304.33%-0.05%
Jan 234.38%-0.01%
Jan 164.39%-0.11%
Jan 94.50%-0.01%
Jan 24.51%+0.06%

How We Obtain FHA Mortgage Rates

The current FHA mortgage rates shown above represent national averages. We use a proprietary sampling process to gather interest-rate data from 35 FHA-approved lenders across the United States. We do this on a weekly basis. We then average these numbers and present them as a single composite (shown above). So when you view this page, you are seeing the current average rates being offered on FHA loans.

Our weekly composite is updated every Thursday at noon (CST). So the rates you see may be dated by several days. You should check the website on Thursday afternoon if you want the most recent information. 

Note: The actual rate you receive from a lender will depend on your individual qualifications as a borrower. This includes your credit score, the amount of money you put down, and other variables. To learn more about this, refer to the passage below about well-qualified borrowers.

What You Should Know When Shopping for a Loan

Here's a bit of truth you won't hear from most lenders (not up front, anyway). There's a chance you won't qualify for the FHA mortgage rates shown above. Conversely, there's a chance you'll get an even better rate than those shown in our weekly composite.

Mortgage lending is a highly individualized process. A well-qualified borrower might be able to secure an interest rate that's a full two points lower than a poorly qualified borrower. That's a significant spread. Bear this in mind as you compare the current FHA mortgage rates being offered by different companies.

The Concept of Teaser Rates
When shopping for a loan, you shouldn't be too concerned with the rates advertised on lenders' websites. These are typically "teaser rates" reserved for the most highly qualified borrowers, often in conjunction with adjustable-rate mortgages. You need to find out what rate the lender is willing to offer you, based on your specific qualifications as a borrower, and the specific type of loan you seek. This is the only number that matters.

Mortgage lenders use teaser rates to generate leads and inquiries. Here's how it works. You visit the website of a particular lender, and you see a box that displays their current FHA mortgage rates. This will generally be the lowest rate the lender is willing to offer for a certain category of loan at any given time. For example, it might be the rate they give to borrowers with credit scores above 750 who opt for the 5-year adjustable mortgage. On the other hand, a borrower with average credit who chooses a 30-year fixed loan will likely be charged a higher interest rate.

This is the basic premise behind the teaser rate. It is meant to generate emails and phone calls from borrowers. But only a small percentage of borrowers will actually qualify for those advertised rates. Keep this in mind when you are viewing the current FHA loan offers on a lender's website. 

The "Well-Qualified Borrower" Concept
Visit the website of any FHA-approved lender in the United States, and you'll probably see their current interest rates advertised on the home page. You'll also see a disclaimer that says something along the lines of "for well-qualified borrowers."

FHA Loan Guidelines

[More: FHA Loan Guidelines for 2012]

Lenders usually advertise the lowest mortgage rates they have available. They do this to generate more leads and inquiries from borrowers like you. After all, you are more likely to contact them if they display their most enticing offers right up front. It's Business 101. But that doesn't mean you'll actually qualify for these offers. Refer back to the blue box above, regarding teaser rates.   

Bear this in mind when you compare current FHA mortgage rates from one lender to the next. It's not enough to compare the interest rates advertised on their websites. You may or may not qualify for them. You need to compare lenders based on the terms they are willing to offer you. In order to do this, you need to apply for a loan. It's the only way to get the details you need to make an informed decision.

Get At Least Two Offers
Mortgage lenders assess risk differently. As a result, they price their loans differently as well. So it's possible for a borrower to be offered five different rates on an FHA loan from five different lenders. In order to spot the best deal (typically defined as the lowest interest rate and closing costs), you need to get offers from at least two different lenders. The more the better.

Fortunately, the Internet makes it a lot easier to do this kind of comparison-shopping. There are several websites online today where you can shop for FHA mortgage rates. We have provided a web link at the top of the page for this very purpose.

Using Points to Lower Your Interest Rate
In closing, we need to discuss the relationship between interest rates and points. In this context, a "point" equals one percent of the loan amount (e.g., $2,500 on a $250,000 mortgage loan). You can pay points at closing in order to secure a lower interest rate on the loan. This is a common strategy among home buyers, particularly those who are interested in saving money over the long term.

Points are basically a form of prepaid interest. And in some cases, they can work out to your advantage. This strategy works best when you plan to keep the loan for a longer period of time, as opposed to only a few years.

[More: Paying points to get a lower rate]

Disclaimer: This page offers an average of current FHA loan rates being offered by lenders across the United States. We make no other claims or assertions about these financial institutions. Nor do we make any guarantees regarding the mortgage rate you will receive on your loan. This information is provided for educational purposes only.