HUD Tweaks Ancient Mortgage Rates to Fractions of a Percent
Published Date: 9/9/2025
Notice
Summary
Starting July 1, 2025, the interest rates on certain FHA-insured loans will change. If your loan falls under Section 221(g)(4), the new rate is 4⅜%. For other FHA loans committed or endorsed during this time, the rate is 4⅝%. These updates affect borrowers and lenders by setting clear, updated interest rates for the next six months.
Analyzed Economic Effects
3 provisions identified: 0 benefits, 0 costs, 3 mixed.
Section 221(g)(4) Debenture Rate Set
If your FHA-insured loan is issued under Section 221(g)(4), the interest rate on the debenture is set at 4 3/8 percent (4.375%) for the 6-month period beginning July 1, 2025. This rate applies to debentures issued during that period.
Other FHA Loans — 4 5/8% for 6 Months
For FHA-insured loans (other than Section 221(g)(4)) that are committed or endorsed during the 6-month period beginning July 1, 2025, the interest rate on the debenture is 4 5/8 percent (4.625%). This applies to loans committed or initially endorsed during that period.
Rate Determination Rule for Other Provisions
For debentures issued under any other provision of the National Housing Act, the interest rate applied is the higher of: the rate in effect on the date the commitment to insure the loan was issued, or the rate in effect on the date the loan was endorsed. This is how the applicable rate is chosen.
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