FHA Mortgage Rates: FHA 30 Year Fixed Mortgage Rate as Low as 4.5%, FHA Rates Close the Gap.
By: John Kaloper
FHA mortgage rates are currently at all time record lows as mortgage rates overall have bottomed out heading into the holiday season. The conforming 30 year fixed rate has been a tad lower than the FHA 30 year fixed rate the past few weeks but not any longer. FreeRateUpdate.com research of wholesale lender’s mortgage rate sheets shows the current FHA mortgage rate at 4.5%, 30-years fixed. Despite 4.5% indeed being available through a broker who has access to wholesale lending rates banks continue to advertise a bit higher. Wells Fargo’s 30 year fixed FHA rate is an eye popping 5%, 30 years fixed compared to the 4.75% they offer on conforming 30 year fixed mortgages. Wells Fargo’s FHA 5/1 ARM though is better than their conforming 5/1 ARM with a rate of 3.625% compared to the conforming ARM’s 3.75%. It’s not just Wells Fargo not offering 4.5% or close to it FHA 30 year fixed rates, it’s most of the big banks. They’re obviously looking to pocket the money from the better rates rather than pass it on to the consumer. Why? They are aware most people using FHA loans to purchase homes just want the loan done in time with the least possible money down. Those shopping for conforming mortgages are more focused on the most competitive rate.
Today’s FHA Mortgage Rates
FreeRateUpdate.com researches wholesale lender’s rate sheets directly to get the most accurate and up to the minute mortgage rates. Our research of mortgage rates today shows FHA mortgage rates significantly improved last this week closing any gap there was between FHA and conforming mortgage rates. Today’s FHA mortgage rate 30 years fixed is 4.5%, down from 4.625% and more prominently 4.75% available earlier in the week. Big banks refuse to change their offering on FHA mortgage rates 30 years fixed and are still offering 5% for the most part. Today’s 15 year fixed FHA mortgage rate is 4.5%. Today’s 5/1 ARM FHA mortgage rate is 3.625%. We do not recommend anyone getting a 5/1 FHA ARM unless you are absolutely sure you will not be in both the loan and home in 5 years.