Rates

FHA Mortgage Rate Today: 6.58%

Track current FHA Mortgage Rate and find the lowest available rate for your situation.

FHA Mortgage Rate — Current Rates

6.58%
6.7%
6.55%
+0.03%
6.78%
5.89%–7.55%

Current FHA Mortgage Rate rates are averaging 6.58% as of December 2024, according to the Freddie Mac Primary Mortgage Market Survey. FHA rates are generally 0.15–0.25% below conventional rates due to FHA insurance, which reduces lender risk.

What Moves FHA Rates Specifically (Beyond the Base Rate)

FHA rate pricing is driven by different mechanics than conventional loans because the FHA insurance fund — not individual lender risk assessment — absorbs most of the default risk. This changes what actually moves your quoted rate.

  • FHA has no credit-based LLPA grid like conventional: Unlike conventional loans, FHA pricing doesn't penalize lower credit scores as steeply through loan-level price adjustments — a 620 FICO FHA borrower's rate is often much closer to a 780 FICO FHA borrower's rate than the equivalent conventional comparison would show
  • Compensating factors matter less on rate, more on approval: FHA's automated underwriting focuses on approve/deny more than fine-grained rate tiers, so factors like reserves and employment history affect whether you qualify more than what rate you're offered
  • Lender overlays vary widely: Because FHA sets a floor (not a fixed standard), individual lenders' risk tolerance for FHA loans varies more than for conventional — shopping matters even more for FHA than other loan types

Rate Context

The 50-year average for 30-year fixed rates is approximately 7.7% (Freddie Mac data). Today's rates, while elevated compared to the 2020–2021 pandemic lows (which touched 2.65%), are near or below the long-term historical average. Buyers waiting for 3–4% rates again may wait a very long time.

Frequently Asked Questions

Less so. FHA loans don't use the same loan-level price adjustment grid that conventional loans do, which heavily penalizes lower credit scores. An FHA borrower with a 620 score often sees a rate much closer to a 780-score FHA borrower than the equivalent gap would be on a conventional loan — though individual lender overlays still create some variation.

Yes — FHA rates are still set by individual lenders (FHA sets minimum standards, not the rate itself), so shopping multiple FHA-approved lenders and negotiating remains just as valuable. The negotiation dynamics are similar; only the underlying pricing mechanics that determine the lender's starting offer differ.

FHA lender overlays vary more than conventional overlays because FHA sets a relatively low floor (580 credit, 96.5% LTV) that many lenders choose not to fully extend to. Lenders willing to lend at FHA's actual floor requirements sometimes offer more competitive rates to that segment specifically to capture volume other lenders decline.