FHA Mortgage rates dropped below 5% again this week for the first time since May.  Freddie Mac announced in their weekly report that mortgage like FHA loans were available at 4.96% on 30-year fixed rate schedules.  Rates for 15-year fixed interest rates reached 4.36% which created a new opportunity for FHA customers who have been waiting for FHA streamline refinancing to make sense.  Most FHA borrowers would save money with a FHA streamline refinance if their current interest rate was more than 5.5%. 

FHA Lenders have reported refinance FHA activity has risen this week and many anticipate the next few months to be very busy with borrowers looking to capitalize on the low mortgage rates.  FHA credit requirements continue to maintain the most flexible guidelines for bad credit and lack of equity.