Economic Conversation

FHA loan rates are going to head higher with average mortgage rates.  The 10 year treasury rate yield has pushed higher, so you can expect to see higher mortgage rates across the board.  How high daily mortgage rates go has yet to be determined but if the 10 year yield continues higher, it looks like the average 30 year fixed mortgage rate could go towards 6%.

Here is some infomation on FHA loans from wikipedia:

FHA loan is a federal assistance mortgage loan in the United States insured by the Federal Housing Administration. The loan may be issued by federally qualified lenders.
FHA loans have historically allowed lower income Americans to borrow money for the purchase of a home that they would not otherwise be able to afford. The program originated during the Great Depression of the 1930s, when the rates of foreclosures and defaults rose sharply, and the program was intended to provide lenders with sufficient insurance. Some FHA programs were subsidized by the government, but the goal was to make it self-supporting, based on insurance premiums paid by borrowers.
Over time, private mortgage insurance (PMI) companies came into play, and now FHA primarily serves people who cannot afford a conventional down payment or otherwise do not qualify for PMI.

As depicted above, FHA loans rate are a little bit higher than average mortgage rates due to the lower amount of financial commitment that lower income Americans can put towards their mortgage.  Most of the time FHA loan rates are just above average mortgage rates which currently stand around 5.3%.