

The average FHA loan rate for a 30-year mortgage is 6.26% in September 2025. FHA loan rates are influenced by multiple factors, including economic conditions and personal creditworthiness.
The average FHA loan rate for a 30-year mortgage is 6.26% in September 2025, according to data from Optimal Blue via Federal Reserve Economic Data (FRED).
However, the rate you qualify for will depend on a variety of economic and personal factors. If you're thinking about applying for an FHA loan, here's what to know about interest rate trends and whether it's right for you.
Mortgage rates often move in line with the 10-year Treasury yield, which reacts to investor expectations about inflation, interest rate policy and the broader economy.
Compare now: Current Mortgage Rates
Concerns about inflation can create uncertainty and push investors to demand higher yields. Mortgage rates have remained elevated in recent years, and they're unlikely to drop significantly until there's more economic stability. Annual percentage rate (APR) includes the interest rate plus any fees or additional costs the lender charges.
Mortgage | Rate | APR | Monthly Payment |
---|---|---|---|
30-year fixed, conventional | 6.79%* | 6.91% | $2,154.29 |
15-year fixed, conventional | 5.73%* | 5.92% | $2,659.05 |
5-year/6-month ARM | 6.66%* | 7.17% | $5,875.15 |
30-year fixed, jumbo | 6.57%** | 6.69% | $2,113.25 |
30-year fixed, FHA | 6.25%** | 6.37% | $2,054.25 |
30-year fixed, VA | 6.04%** | 6.16% | $2,015.99 |
*Source: Curinos LLC, September 2025; assumes a 720 FICO® ScoreΘ, $350,000 mortgage
**Source: Optimal Blue via FRED, September 2025
Notes: Rates can vary by data source; monthly payment calculation uses APR and assumes a $350,000 mortgage and 20% down
Learn more: Housing Market Predictions: What to Expect This Year
Mortgage interest rates dropped to record lows during the pandemic as the Federal Reserve took action to stabilize the housing market. That changed in 2022 when the Fed began raising the federal funds rate to combat rising inflation.
Although mortgage rates don't move in lockstep with the Fed's rate, they're heavily shaped by expectations around Fed policy, which affects the 10-year Treasury yield. Since peaking in October 2023, rates have mostly held steady due to ongoing economic uncertainty.
Here's a look at how the average interest rate for a conventional 30-year fixed-rate mortgage has changed over the past five years.
Check today’s rates to find the best loan offers. Staying updated on current rates helps you secure a competitive mortgage and save more over time.
For the most part, FHA loan interest rates are subject to the same influences as conventional loan rates.
However, FHA loans are backed by the Federal Housing Administration and, therefore, less risky for lenders. As a result, they may offer lower interest rates, particularly for people with lower credit scores and down payments.
Here are some other factors that can affect the rate you receive:
Learn more: What Credit Score Do I Need to Buy a House?
To qualify for an FHA loan, you'll need to meet financial, credit and property-related criteria set by both the FHA and your lender. While some requirements may vary by lender, here are the most common ones to expect:
Learn more: How to Qualify for an FHA Loan
As with any type of mortgage loan, FHA loans come with both advantages and disadvantages to consider. Here's what to keep in mind as you evaluate your situation and options.
Lower credit score requirements: You may qualify for an FHA loan with a score as low as 500, making it more accessible for borrowers with less-than-perfect credit.
Low down payment options: FHA loans require just 3.5% down if you meet the credit requirements, which can make homeownership more achievable for first-time or lower-income buyers.
Flexible underwriting: FHA loans allow higher debt-to-income ratios than most conventional loans, which can help borrowers with tight budgets qualify more easily and possibly get a better rate.
Mortgage insurance is required: You'll pay both an upfront and annual mortgage insurance premium, which can significantly increase the total cost of your loan and can be difficult to remove.
Property restrictions apply: The home must meet HUD's minimum property standards, and you must live in it as your primary residence, limiting your options compared to conventional loans.
Loan limits are lower: FHA loans have regional loan caps that are lower than conventional conforming loan caps, which may restrict your buying power if you're shopping in a high-cost housing market.
Learn more: FHA vs. Conventional Loans: What's the Difference?
There are several situations where getting an FHA loan could make sense, including the following scenarios:
On the other hand, an FHA loan might not make sense if:
Before you apply for an FHA loan, be sure to research and compare different types of mortgage loans, such as conventional loans, VA loans and USDA loans, to determine which one is best suited for you.
While FHA loans are designed to be accessible, taking a few extra steps can help you qualify for the most competitive rate possible:
FHA loans can be a solid option if you're struggling to qualify for a conventional mortgage. With lower credit score and down payment requirements, they open the door to homeownership for many buyers.
That said, they also come with limits, including required mortgage insurance and property restrictions. As you weigh your options, consider how long you plan to stay in the home, your financial situation and what loan types you're eligible for.
Before you apply, take time to compare lenders, review loan terms and check your credit. Your credit score plays a big role in the rate you receive, so it's smart to keep tabs on your progress. You can monitor your credit for free with Experian, making it easier for you to spot opportunities to improve and qualify for a better deal. The more prepared you are, the better your chances of landing a loan that fits your goals.
Explore personalized solutions from multiple lenders and make informed decisions about your home financing. Leverage expert advice to see if you can save thousands of dollars.
Learn moreBen Luthi has worked in financial planning, banking and auto finance, and writes about all aspects of money. His work has appeared in Time, Success, USA Today, Credit Karma, NerdWallet, Wirecutter and more.
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