U.S. mortgage rates will remain above 6% across the board in 2026, with the 30-year fixed rate at 6.375% and a minimum down payment of 3.5% for FHA loans.

⑴ Fannie Mae, the Mortgage Bankers Association, and Wells Fargo all forecast that mortgage rates will remain above 6% for the rest of 2026. On Wednesday, the 30-year fixed rate was 6.375% with an annual percentage rate (APR) of 6.547%; the 15-year fixed was at 5.75% with an APR of 6.017%; and the 10-year fixed at 5.875% with an APR of 6.232%. The Federal Housing Administration (FHA) 30-year loan rate is around 6.25%, with an APR of 7.105% and a minimum down payment of 3.5%.⑵ FHA loans provide mortgage insurance to approved lending institutions, protecting them from loss if the homeowner defaults. Borrowers bear the cost of mortgage insurance, and the qualification standards are more flexible than for conventional loans. Drawbacks include: a 1.75% upfront mortgage insurance premium and an annual premium, with insurance not automatically canceled even after reaching 20% equity; the property must meet safety standards and strict appraisal requirements; and loan amounts are limited by the median home price in the area.⑶ Situations that may disqualify borrowers from FHA loans include: already having an FHA mortgage, opening new lines of credit after applying, delinquent student loans, a low FICO score, excessive debt burden, unpaid court-ordered child support, and unpaid federal debts. Most housing economists believe that rates are unlikely to drop to 5%, and a significant decline from current levels is even more unlikely.