Illinois mortgage and refinance rates for October 2026

As of Tuesday, October 20, 2026, current interest rates in Illinois are 7.52 percent for a 30-year fixed mortgage and 6.86 percent for a 15-year fixed mortgage. Before you buy, know your options and compare as many mortgage offers as you can to find the best deal.

Since the beginning of 2026, mortgage rates in Illinois — and the rest of the country — have hovered slightly above 6%, fueled by the conflict in Iran and heightened economic uncertainty. While rates are difficult to predict, many housing economists expect them to remain around 6% for the rest of 2026 and into 2027.

Refinance rates, like mortgage rates, have fluctuated in the past year — but in general, they remain far above the historic lows of the pandemic. Still, if you bought a home a few years ago, when rates were closer to 8%, now may be a good time to refinance. According to real estate data provider ATTOM, nearly 6,000 Illinois homeowners refinanced in August 2025, a year-over-year increase of about 6%. 

Many homes in Illinois have also experienced rapid appreciation over the past few years. If you have tappable equity, you could use a cash-out mortgage refinance to fund large expenses more cheaply than with other forms of borrowing. 

As of February 2026, Illinois home prices are up year-over-year, but still well below the national median. And with fewer homes selling over list price — and homes spending longer, in general, on the market — the state is a relatively welcoming place for first-time buyers. 

• Median home sales price, January 2026: $275,000
• Median home value, January 2026: $271,500
• Median down payment, August 2025: $39,000
• Median days on market, February 2026: 65
• Percentage of homes sold above list price, February 2026: 28.1%
• Percentage of homes with price drops, February 2026: 15.7%
• Homeownership rate, Q4 2025: 68.4%

Sources: ATTOM, Redfin, U.S. Census Bureau

If you’re looking to get a mortgage in Illinois, there are several options depending on your financial situation:

If you’d like to become a homeowner in Illinois, the state can help make it easier and more affordable. The Illinois Housing Development Authority (IHDA) offers several first-time homebuyer assistance programs, including fixed-interest mortgages and down payment assistance loans through its Access Mortgage initiative. These include:

• IHDA Access Forgivable Mortgage: The IHDA Access Forgivable Mortgage program offers fixed-rate, 30-year mortgages via participating lenders. Through this program, you can get 4% of the home purchase price, up to $6,000, as a closing cost and down payment assistance loan. You don’t need to pay this loan back as long as you live in the home for at least 10 years. To qualify, you'll need a minimum 640 credit score and to meet income and purchase price limits that vary by county.
• IHDA Access Deferred Mortgage: The IHDA Access Deferred Mortgage program offers a 30-year, fixed-rate mortgage through an FHA, VA, USDA or HFA Preferred (conventional) loan. You’ll also receive 5% of the home’s purchase price, up to $7,500, to help you pay for closing costs and the down payment. The loan is interest free, and you don’t need to pay it back until the end of your loan term, or when you sell your home or refinance your mortgage. To qualify, you need a credit score of at least 640. The same income and purchase price limits as with the IHDA Access Forgivable Mortgage apply.
• IHDA Access Repayable Mortgage: The IHDA Access Repayable Mortgage program offers a 30-year, fixed-rate mortgage. Your loan options include an FHA, VA, USDA or HFA Preferred (conventional) loan. You’ll also get a down payment and closing cost assistance loan worth 10% of the purchase price, up to $10,000, repaid over 10 years at 0% interest.  To qualify, you’ll need to meet the same program requirements as the Deferred and Forgivable programs.

Be sure to browse assistance programs local to where you’re looking to live, too. The Chicago Housing Authority (CHA), for example, offered up to $20,000 of grant assistance to qualifying current residents who want to become homeowners and up to $10,000 of assistance to those moving to Chicago. The grant is forgiven after 10 years in your home. This program is closed as of October 2025, but the CHA indicates that the program may recommence at some point in 2026.