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Christian Penner

Current 30-yr fixed FHA and VA mortgages hovered in the mid-to-high 6% range nationwide, while conventional loans generally stayed above 7% recently.
A recent Fed increase, stubborn low-3% inflation, and oil-price spikes pushed the 10-yr Treasury above 5%, helping pull mortgage pricing higher nationwide.
Government backing kept FHA and VA loans structurally cheaper than conventional options, while offering flexible terms, low down payments, and no PMI for VA borrowers.
VA refinance pricing moved from the mid-6% range into the high-6% range, while streamline programs stayed simpler; borrowers still needed to weigh closing costs carefully.
Market watchers saw slight strength in mortgage-backed securities, raising the chance of small lender price improvements, but comparing lenders remained important in this rate environment.

FHA and VA Loans Stay Below Conventional

In the US, rising rates have not been uniformly negative for stocks. Financial companies can benefit as lending spreads widen between loans and deposits.
The central bank recently lifted its benchmark rate into a near-4% range, and futures markets priced in roughly another ~0.75 points by Late-Q2 2027.
Higher rates can lift bank profits when loan yields outpace deposit costs, boosting net interest income. A steeper yield curve can add support.
The setup also included slightly stronger 2027 growth expectations, resilient domestic spending, upward earnings revisions, and improved capital-markets activity for US financial companies.
A broad-market ETF traded near 20x forward earnings versus a little above 15x for financials, with sector earnings growth expected in 2026 and 2027.