FHA loan rates are expected to go after mortgage rates this week and that could very well be higher.  The 10 year rate yield has stirred up so it is very likely that mortgage rates will tag along.  The last time that the 10 year yield moved much higher and mortgage rates did not shift, a one day move of over .75% in average mortgage rates has been seen then.  Unluckily, this move was to the up side rather than the down side.  If that would be the case today, mortgage rates would have gone over 6%.

If mortgage rates progress this much higher, expect to see FHA loan rates following them higher.  If you have been planning to have refinancing or getting your first mortgage, this is possibly the best time to do so. Later, even if you wait a few weeks, you could see average mortgage rates going above 6% which will bring FHA rates higher as well.

The one good thing is that you are aware of the situation now and you can take action for getting the mortgage application process in progress.

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Don’t make a hasty decision and make sure that you fully understand the conditions of your FHA mortgage, you’re comfortable with the FHA loan rates and above all your affordability. Before signing up for FHA home loan you must know the answers to the following questions:

• Who pays the closing costs?
• What will be the total amount due every month on your FHA mortgage?
• What happens if your payment is a day or two late?
• What may cause an FHA mortgage to go into default?
• What is the actual cost of FHA home loan, you must be well aware of FHA mortgage rate in this regard.

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