Does Feature Normalization affect Gradient Descent | Linear Regression
Standard normalization let gradient descent converge faster. That's why most cases normalization is applied (of course it also eliminate effect of different scale features values).

In this quora topic it is explained well.

Your learning rate is very small. I think there is not enough number of iterations to coverge local minimum. This graph explains well the effect of learning rate to gradient descent:



You may want to check my another answer for it.