FHA mortgage rates recently dropped below 6%, averaging 5.99%, but their APRs are higher, around 6.721%, due to upfront and annual mortgage insurance premiums (MIP). FHA loans often have lower interest rates because they are government-insured, benefiting borrowers with lower credit scores. However, FHA MIPs can increase overall costs and may last the loan's duration, unlike conventional loan PMI, which can be canceled after reaching 20% equity. Comparing interest rates, APRs, fees, and loan terms is essential when choosing between FHA and conventional loans.