The average 30-year fixed mortgage rate hit 7.28% in Freddie Mac’s survey released October 1, 2026. That is up from 7.03% a week earlier and 6.34% a year ago. On a $405,000 Chicago home, the August median, 3.5% down means about $2,674 a month in principal and interest.
Last reviewed October 6, 2026 · Chicago First Time Home Buyer editorial team
This is an update to our September post, Mortgage Rates Top 7%. Two things changed: rates moved up another quarter point, and new August sales data lowered the City of Chicago median price.
At a glance: principal and interest on a $405,000 Chicago home
| Down payment | Loan amount | At 6.34% (a year ago) | At 7.03% (Sept. 24, 2026) | At 7.28% (Oct. 1, 2026) |
|---|---|---|---|---|
| 3.5% ($14,175) | $390,825 | $2,429 | $2,608 | $2,674 |
| 5% ($20,250) | $384,750 | $2,392 | $2,568 | $2,633 |
| 20% ($81,000) | $324,000 | $2,014 | $2,162 | $2,217 |
What changed since September
The one-week rate increase adds about $66 a month on the 3.5% down example. Compared with a year ago, the same loan costs about $245 more each month.
Prices moved the other way in the latest data. Illinois REALTORS reported a City of Chicago median of $405,000 for August 2026, down from $425,000 in July. August’s median was still 8.0% higher than August 2025.
Monthly medians shift with the mix of homes that close, so one month’s dip is not a trend. Closed sales in the city fell 2.7% from a year earlier, to 1,907. Listings for sale fell 23.3%, to 3,541.
What it means for a Chicago first-time buyer
Fewer listings means competition has not eased much despite higher rates. Redfin’s August data showed 49.3% of Chicago homes selling above list price.
Your full monthly cost will be higher than the table. Add Cook County property taxes, homeowners insurance, any mortgage insurance and condo or HOA dues. Our monthly payment guide shows how to add each one, with tables by price and down payment.
Assistance can lower the cash you need at closing. Compare HomeGrown, IHDAccess Home and the other options on our programs page. Loan types and down payment minimums are on our mortgage options page.
Freddie Mac’s figure is a national average. Your quote depends on your credit, down payment, loan type and points, so compare offers from more than one lender on the same day.
Common questions
What is the average mortgage rate in Chicago in October 2026?
Freddie Mac’s national average for a 30-year fixed loan was 7.28% on October 1, 2026. Freddie Mac does not publish a Chicago-only rate, and individual quotes vary by borrower.
What is the median home price in Chicago right now?
Illinois REALTORS reported $405,000 for the City of Chicago in August 2026. That was 8.0% above August 2025 and below July 2026’s $425,000.
How much does a quarter-point rate rise add to a Chicago mortgage payment?
On a $390,825 loan, moving from 7.03% to 7.28% adds about $66 a month in principal and interest. That is roughly $790 a year.