4.25% 30 Year Fixed Rate
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Program Rate APR
30-Yr fixed 4.750 % 0.7 to 1
15-Yr fixed 3.750 % 0.7 to 1
5/1 ARM 3.125 % 0.7 to 1
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FHA Mortgage Rates Today

There are some advantages to a rough economy, and one of them is that interest rates tend to remain low. Currently, FHA Mortgage rates can be as low as 3.75% for a 30 year fixed rate mortgage. This is a historically low rate, especially considering the average mortgage only five years ago was accompanied by a 7% or 8% interest rate – and that for borrowers with good credit. Clearly, these historic lows ought to be taken advantage of by anyone in a position to purchase a home.

Good mortgage rates naturally will depend on the prospective borrower’s credit rating, but one major advantage to these low interest rates is that even if a borrower’s credit rating is so-so overall, their likely rate will be equivalent to that which a good credit borrower paid only a few years ago. Typically fixed 30 year 6% and 7% interest rates have been judged to be fair for a homeowner, and with the increased scrutiny levied upon marginal borrowers since 2008 a mortgage even at these APRs is likely a good investment at this point in time.

FHA mortgage rates are not expected to rise soon. The Fed has signaled that it does not anticipate an increase in the base rates it charges banks that want to borrow from the federal government, and this base rate usually underlies the rates lenders offer to their customers. The economy remains stagnant at best, and though there are prospects for growth in the future, in the near term the ongoing crisis in Europe and the state of finances in much of the rest of the Developed world are holding down any enthusiasm for interest rate hikes.

It is not common to see such good mortgage rates persist for such a long period of time. They typically accompany the markets in rising and falling, but although there was a stock market rally during the 2010-2011 duration of Fed quantitative easing period number 2, mortgage rates didn’t rise at the same time. In order to keep the economy from slipping back into recession it is unlikely that any central bank will raise rates anytime soon. So look for FHA mortgage rates and other borrower costs to remain low for the foreseeable future.

Simply put, it remains a historic time, and there have been few better opportunities to get a long term, fixed rate mortgage at such low rates.