The cost of borrowing through an FHA mortgage increased again this week. On Tuesday, May 27, 2025, the average 30-year fixed FHA loan rate rose to 7.75%, up from 7.71% the day before. That marks a sharp 62 basis point increase from the prior week’s average of 7.13%, according to Zillow.
For borrowers seeking shorter terms, the 15-year fixed FHA rate held steady at 6.00%, while the 5-year adjustable-rate mortgage (ARM) FHA rate remained at 6.38%.
What today’s FHA mortgage rates mean for buyers
FHA loans are a popular option among first-time and lower-income buyers because of their flexible qualification requirements and low down payment minimums. But with rates climbing, new borrowers may face higher monthly payments unless home prices or other costs decline.
The rate increase may prompt some homebuyers to lock in today’s rates before they rise further—or consider alternative loan types like conventional or VA loans, depending on eligibility.
Current FHA mortgage rates by loan type
| Loan Type | Rate | APR |
|---|---|---|
| 30-year fixed FHA | 7.75% | 8.78% |
| 15-year fixed FHA | 6.00% | 6.72% |
| 5-year ARM FHA | 6.38% | 7.14% |
| 30-year fixed VA | 6.62% | 6.84% |
| 15-year fixed VA | 6.13% | 6.48% |
Rates last updated May 27, 2025
Is an FHA loan still a good option?
Despite the recent rise in FHA mortgage rates, these loans remain one of the most accessible ways to purchase a home with less money upfront. FHA loans allow:
- Down payments as low as 3.5%
- Lower credit score requirements (typically 580+)
- Potentially easier qualification for those with higher debt-to-income ratios
However, FHA loans include mortgage insurance premiums (MIP), which can raise the overall cost of the loan—even beyond what conventional options might offer in some cases.
Tips for getting a better FHA mortgage rate
Even with rising national averages, individual rates vary by borrower. To improve your rate:
- Boost your credit score – Higher scores lead to lower rates
- Increase your down payment – More equity means better terms
- Compare lenders – FHA loan rates can vary widely by provider
- Act quickly – Lock your rate before it goes higher
Bottom line
The average FHA mortgage rate surged to 7.75% this week, continuing a rising trend that could affect buying power for FHA borrowers. Whether you’re house hunting now or just comparing options, it’s critical to track daily rate movements and secure the best deal possible.