Why are rates for conventional 30 year mortgages higher?

It's all based on the secondary market and because they aren't backed by the Government like FHA. FHA is backed by the Government but you also pay 1.3% in mortgage insurance. So Conventional is still much better around 4% on a 30yr. fixed.

Rates in general are very low. Not sure if you're asking why rates are higher this week or higher than FHA/VA.

If you compare to FHA they are lower. You can do a 3% down conventional with PMI and have a lower payment than a 3.5% FHA with 1.75% MI financed into the loan + another 1.3% per year.

I agree with the others. They are comparable. Although I didn't see anyone mention the "G" fees. The guarantee or "g" fee is Fannie Mae and Freddie Mac's way to stay competitive. They can raise that fee whilst not relying so much on MBS and how they trade for expenses and/or profit.I believe the last time they increased fees was when FHA increased Mortgage Insurance Premiums last year. Now that FHA increased MIP again this year, I have heard grumblings of another g fee increase. Rates are still really low. If you're considering a refinance, there's no time like the present to contact a local mortgage banker/broker, to submit an application. Best,Kim LawsonOhio Mortgage Loan OriginatorLicensing and Contact information located in my profile.

Then what?

The underlying mortgage-backed bond that 30 year mortgage rates are tied to have been on a major sell-off since the Jobs Report. Although mortgage-backed securities are in an oversold position, all the positive economic reports continue to drive the sell-off which only hurts conventional interest rates.