30 year fixed FHA loan rates remain near record lows as the week begins. The difference between current FHA loan rates and conforming mortgage rates continues to be marginal. Conforming 30 year fixed mortgage rates are as low as 4.875 while 30 year fixed FHA loan rates are as low as 5 percent.
FHA Loan Rates Forecast

The 10 year treasury yield, the best indicator for forecasting FHA loan rates and conforming mortgage rates is at 3.47, near a 3 month low. Goldman Sachs said early last week they expect the yield to descend to 3 percent by the end of the year. If Goldman’s forecast for the yield is correct FHA loan rates should waiver between 4.5 and 5 percent for the rest of 2009. Lower FHA loan rates can provide a major boost to the housing market as 25 percent of new mortgages are FHA insured loans.
FHA Loan to Buy a Home
Major organizations continue to lobby for an extension of the first time home buyer tax credit of up to $8,000 available to anyone purchasing a home for the first time in 3 years. The program is set to expire before the end of this year. Fha loans are credited with stabilizing hosuing markets as bargain hunters use FHA insured loans to buy homes with minimal money down, the kicker for many shoppers hesitant to part ways with cash in the recession. Downpayments of just 3 percent are common on FHA purchase loans.
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On April, 05 2010, MI will be boosted to 2.25 and minimum credit scores will be raised. Read about this and other
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