Mortgage rates drop below 6% for FHA, VA loans

On Thursday, mortgage rates data from Mortgage News Daily (MND) showed that the 30-year fixed rates for government loans fell below 6%.

As of Thursday afternoon, the average Federal Housing Administration (FHA) loan rate was 5.97% and the U.S. Department of Veterans Affairs (VA) rate was 5.99%. Mortgage News Daily also reported 15-year fixed rates at 5.70%.

The growing appetite for government loans are following the lead of conventional mortgages, as rates for conventional loan products have dropped to a new low for 2025 at 6.27%, according to MND. That’s in spite of Thursday’s Consumer Price Index (CPI) inflation report showing that prices in August rose faster on a monthly and yearly basis than they did in July.

Activity across all mortgage types jumped this week, according to data from the Mortgage Bankers Association (MBA)’s weekly mortgage applications survey for the week ending Sept. 5. Applications increased 9.2% from one week earlier.

By product type and activity, the VA loan share increased to 15.3% while the FHA loan share dipped slightly to 18.5%, a figure that is likely to change trajectory given sub-6% rates.

Editor’s note: This is a developing story and will be updated with more information.