Current homeowners are looking for any savings they can get, and with mortgage rates on conventional loans not moving much, that isn't easy. Loans from the Federal Housing Administration, or FHA, which require mortgage insurance, however, are providing an outlet.

Total applications to refinance a home loan rose 14% last week compared with the previous week, according to the Mortgage Bankers Association's seasonally adjusted index. Volume was 88% higher than the same week one year ago. The refinance share of mortgage activity increased to 58.2% of total applications from 53.0% the previous week.

Demand for FHA refinances was up 24% for the week, as the FHA interest rate for 30-year fixed-rate loans fell to 6.08% the lowest level since September 2024.

In contrast, the average rate for 30-

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