Why are FHA refinance rates at their lowest since September 2024?

FHA refinance rates for 30-year fixed loans dropped to 6.08%, the lowest level recorded since September 2024, making them attractive for homeowners.

What is the current trend in home purchase mortgage applications?

Applications to purchase a home dropped 2% last week but are still up 19% compared to last year.

Are conventional mortgage rates changing significantly?

Rates for conventional 30-year fixed-rate mortgages have seen minimal movement, increasing slightly to 6.33%.

Home / Business and Economy / FHA Rates Drop to Lowest Since Sep '24, Fueling Refis

FHA Rates Drop to Lowest Since Sep '24, Fueling Refis

10 Dec, 2025

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Summary

Mortgage applications to buy a home decreased by 2% last week.
Refinance applications rose 14% week-over-week, up 88% annually.
FHA 30-year fixed rates hit 6.08%, the lowest since September 2024.

FHA Rates Drop to Lowest Since Sep '24, Fueling Refis

Applications for mortgages to buy a home experienced a 2% decline over the past week, yet remain significantly higher by 19% compared to the same period last year. Homeowners are actively seeking savings, a pursuit complicated by relatively stable mortgage rates on conventional loans.

However, refinancing activity has surged, with total applications increasing by 14% compared to the previous week and an impressive 88% year-over-year. The share of refinancing activity rose to 58.2% of all mortgage applications. This trend is particularly pronounced for FHA loans.

Demand for FHA refinances saw a 24% increase this week, fueled by a drop in the FHA interest rate for 30-year fixed loans to 6.08%, marking the lowest level since September 2024. In contrast, the average rate for 30-year fixed-rate mortgages with conforming loan balances edged up slightly.