FHA rates are often lower than conventional rates due to the lower level of risk associated with these loans. But it doesn't always work out this way. There are many variables that affect the actual interest rate applied to a home loan.
FHA mortgage rates hew closely to the mortgage rates on traditional home loans. If the average interest rate on a 30-year fixed-rate mortgage stands at 5.4 percent, you can figure that the average FHA mortgage rate is nearly the same. This makes these loans even more attractive.
Rates on 30-year fixed-rate mortgages are currently averaging 3.04%, according to the long-running weekly survey from mortgage giant Freddie Mac. You could be an excellent refi candidate if you have a mortgage you took out in 2019, when average rates went as high as 4.5%.