Average market rates for May 06, 2026 are 5.79% for 30-year fixed FHA refinance
| Product | Rate | APR |
|---|---|---|
| 30-year Fixed Fha Refinance | 5.79% | 6.99% |
How we source rates and rate trends
FHA Interest Rate Trends
Mortgage rates aren’t what they used to be, and FHA rates are no exception. Rates surged sharply in 2022, but have been trending down since. FHA homeowners who purchased since mid-2022 may be able to save with a refinance.
| Product | Rate | APR |
|---|---|---|
| 30-year Fixed Fha Refinance | 5.79% | 6.99% |
| 30-year Fixed Refinance | 6.55% | 6.58% |
Will FHA Refinance Rates Fall?
FHA rates are unpredictable — the only certainty is that they will change. That said, market consensus has generally pointed toward rates gradually declining from recent highs, though there may be periods of temporary increases along the way. Monitoring rate trends is the best way to know when the timing may be right for a refinance.
What Impacts FHA Interest Rates?
FHA rates rise and fall based on what’s happening in the broader market — they respond to economic forces much like the stock market, and are equally unpredictable.
FHA refinance rates tend to rise with:
- High inflation
- A strong economy
- Low unemployment
- Federal Reserve rate hikes
FHA refinance rates tend to fall when:
- The economy slows or approaches recession
- Unemployment rises
- Geopolitical uncertainty increases
- The Federal Reserve cuts the federal funds rate
In general, a strong economy pushes rates higher. When economic uncertainty rises, investors tend to shift into safer assets like mortgage bonds — increasing demand for those bonds and pushing their yields (and mortgage rates) lower.
More FHA Refinance Information
Types of FHA Refinances
There are six types of FHA refinances. The most common are:
FHA Streamline Refinance: This program lets eligible FHA loan holders lower their rate and payment when mortgage rates drop — with no pay stubs, tax returns, employment verification, or appraisal required. It’s a faster, simpler refi option for those who qualify.
Standard FHA Refinance: A good option if you don’t currently have an FHA loan, or if you want to roll closing costs into the new loan (which isn’t allowed with the Streamline). Refi.com requires a minimum 620 credit score for an FHA rate-and-term refinance.
FHA Cash-Out Refinance: Tap into your home’s equity for a remodel, debt consolidation, or any other purpose. Your new loan can be up to 80% of the home’s current value. Refi.com requires a minimum 620 credit score for an FHA cash-out refinance.
Reasons to Refinance
The most common reasons homeowners refinance include:
- Reducing their rate and monthly payment
- Converting a 30-year mortgage to 15 years (or vice versa)
- Funding a home renovation
- Accessing cash to purchase an investment property or second home
- Paying off high-interest consumer debt or a second lien on the home
- Distributing equity as part of a divorce settlement
Make sure a refinance is financially beneficial before moving forward. If you won’t recoup closing costs within about three years, it may be better to wait.
How Soon Can You Refinance?
There are a few timing considerations when looking into an FHA refinance soon after receiving your loan.
Seasoning: FHA requires 210 days and six payments since opening your current FHA loan before you’re eligible for a Streamline refinance. If refinancing within three years, you may also qualify for an FHA upfront mortgage insurance refund.
Net Tangible Benefit: To qualify for an FHA Streamline, your new combined rate (including any mortgage insurance reduction) must be at least 0.50% lower than your current rate. Different rules apply when refinancing from or to an adjustable-rate mortgage.
Break-Even Point: Calculate how long it will take for your monthly savings to recoup closing costs. If it’s longer than two to three years, a refinance may not be worth it.
The Costs of Refinancing
Refinancing can cost thousands of dollars, so it’s important to weigh the costs carefully. FHA refinance costs can include:
- Origination fee of up to 1%
- FHA upfront mortgage insurance premium, or UFMIP (you may be eligible for a partial refund from your previous loan)
- Title report
- Credit report
- Flood zone determination report
- Surveys
- Appraisal (if required)
- Application or processing fees
- Escrow or notary fees
- Tax service fees
- Document preparation fees
- Settlement fees
Some lenders may offer a slightly above-market rate — still lower than your current rate — in exchange for covering some or all of your closing costs. It’s worth asking about this option when comparing lenders.
Shop Multiple Lenders
FHA rates vary by lender and change daily. Some lenders actively pursue FHA loan volume and cut rates to attract borrowers; others do the opposite. It’s worth checking with three to five lenders — including banks, credit unions, and non-bank mortgage companies — to find the most competitive offer.
Request a Loan Estimate (LE) from each lender so you can compare closing costs alongside the rate, not just the rate alone.
Ready to Start Your FHA Refinance?
FHA refinancing is a strong option for homeowners looking to lower their rate — including those with less-than-perfect credit. Whether you’re interested in a low-doc Streamline or want to access your home’s equity, Refi.com can help you explore your options.
Start your FHA refinance application with Refi.com today.
