The Wall Street Journal had an article about interest rates a few days ago and they predict that the Federal Reserve will raise interest rates this fall before the election. They forecasted that interest rates will go up 25 basis points. This would be the first rate increase in 2 years. FHA rate will follow soon after if that happens. Try googling that and find the article.

La....answered Tues., 7/1/8, 12:08 PM CST.....Your question was, "What is the FHA interest rate right now? Will it go up in the next 30 days? What is your prediction?"....Interest rates change from day to day.....currently they are averaging 6.25-6.5%. Yes, rates will go up....based on world news/events/market changes......Predictions are hard to come by, since no one here is a psychic...However, FHA is a great way to finance a home for anyone, not just first-time buyers; it, requires low downpayments (3-5% in most cases) and is less restrictive than conventional loans (20% down or PMI...80/20). The financial markets are in a constant state of change/flux when it comes to interest rates/loans, so you never know if rates will go up and or down. Traditionally, during a election year politicians like to make things appear 'rosie'....so they tend to do everything in their power to keep the markets positive. Bad news in the financial markets/economy often means a loss of votes come election day and the general public gets nervous and stops spending, which messes with the GDP (2/3's is consumer spending keeping our economy afloat).. They want us consumers to keep shopping at the local mall to keep the economy propped up. That's why the stimulus checks. We're coming off a 3-5 year 'boom' in housing appreciation prices (brought on by the Federal Reserve & Washington, D.C.'s plan to increase homeownership in America for anyone who breathes); followed by a 'bust' cycle which is to be expected. However, this one is much more severe in nature.sending repercussions through the markets in all industries.....With the overextension of credit in the U.S. and all over the world in general, all global economies are feeling the effects of government & consumer overspending---outspending their personal income. Passing the bill on to our grandchildren (U.S. debt) is finally catching up with all people around the world. Because of this uncertainty (doom/gloom scenario by the media) money normally 'pooled/loaned' for investments is drying up. If you can't get financing, you can't buy--anything....a car, house, boat, college tuition, etc. The pendulum has swung from 'loan to anybody' to 'loan to just the good candidates' (tightening of loan requirements). This is a normal human reaction to reducing risk. However, now is a great time to buy (lots of inventory)...and prices are very favorable. I would not hesitate to purchase. Quite frankly, this is the BEST TIME TO BUY...when there's a market correction. Think of it as playing Monopoly and the bank just dumped lots of properties on the market FOR SALE. Prices are cheap compared to other cities. SUPPLY AND DEMAND forces are in your favor. I would definitely buy a home NOW...before the financing rules change and you are locked out of the market. Real estate is a tangible object that can appreciate in value, but you must hold it long term to benefit. See the website at the bottom of this post for FHA information....I wish you the best. Have you noticed that many rich folks are buying up distressed companies and properties right now? What does that tell you? Disclaimer: Any information posted here is for consumer educational purposes only; please seek professional advice from a CPA and/or legal counsel to protect your interests.

FHA is going to risk based scoring later this month. Which means that borrowers with credit issues will pay higher interest rates than applicants with perfect credit. In the past, all borrowers regardless of credit score could get a market interest rate on an FHA loan. If you have any other questions regarding buying in Houston area you can use this link to contact me http://www.houstonprimerealty.com/contact_me.asp

Should be just under six percent. Predicting the future rate is not possible with accuracy. You can see a month by month list of rates for FHA loans at http://www.hud.gov/offices/hsg/comp/rpts/rates/fharates.pdf

Right now FHA rates are staying right around 6.5% assuming good credit. It is harder then ever to just say this is where rates are due to credit playing a major role in a rate quote. Rates look stable right now but this market is so unpredictable.