The average 30-year fixed mortgage rate reached 7.03% in Freddie Mac’s survey released September 24, 2026, up from 6.30% a year earlier. On a $425,000 home, the City of Chicago’s July 2026 median price, a buyer putting 3.5% down would pay about $2,737 a month in principal and interest. That is about $198 more than at last year’s rate.
Last reviewed September 28, 2026 · Chicago First Time Home Buyer editorial team
Rates this week
| Loan | Sept. 24, 2026 | Prior week | A year earlier |
|---|---|---|---|
| 30-year fixed | 7.03% | 6.95% | 6.30% |
| 15-year fixed | 6.42% | 6.26% | 5.49% |
It was the fifth weekly increase in a row and the highest 30-year average since January 2025.
What 7% means on a Chicago median-priced home
| Down payment on $425,000 | Loan amount | Monthly principal and interest at 7.03% | At 6.30% | Difference |
|---|---|---|---|---|
| 3.5% (FHA minimum) | $410,125 | $2,737 | $2,539 | +$198 |
| 5% | $403,750 | $2,694 | $2,499 | +$195 |
| 20% | $340,000 | $2,269 | $2,105 | +$164 |
These figures are principal and interest only on a 30-year fixed loan. Property taxes, homeowners insurance, mortgage insurance and any condo assessment come on top. Your own rate depends on credit, down payment and loan type.
What Chicago first-time buyers can do
- Get a written rate quote before you tour. Survey averages are a guide, not an offer.
- Use assistance to lower the loan. The City’s HomeGrown grant of $10,000 to $70,000 reduces what you borrow, and IHDA’s IHDAccess Home adds up to $15,000 at 0% interest.
- Budget the full payment. Property taxes and insurance add to the monthly cost; see what it costs to buy in Chicago.
Common questions
What is the average mortgage rate right now?
Freddie Mac’s 30-year fixed average was 7.03% on September 24, 2026, and the 15-year average was 6.42%. Freddie Mac updates the survey every week.
How much more does today’s rate cost on a Chicago home?
On a $410,125 loan, the difference between last year’s 6.30% and this week’s 7.03% is about $198 a month in principal and interest.
Sources
- Freddie Mac, Primary Mortgage Market Survey, September 24, 2026
- Axios Chicago, July 2026 Chicago median price (Illinois REALTORS data)
- Monthly payments calculated by Chicago First Time Home Buyer with a standard 30-year amortization formula.