Iowa Mortgage and Refinance Rates

As of Thursday, May 21, 2026, current interest rates in Iowa are 6.79% for a 30-year fixed mortgage and 6.10% for a 15-year fixed mortgage. Like the rest of the country, borrowers in Iowa are dealing with mortgage rates that are unlikely to drop meaningfully soon. The Federal Reserve cut the federal funds rate several times in the latter half of 2026, driving a small dip in rates. But mortgage rates are currently trending back upward amid inflation and the U.S.'s war against Iran.

Refinance rates in Iowa are hovering in the same territory as purchase rates: between 6.5% and 7%. If you bought when rates were below 6%, it probably doesn't make sense to refinance right now.

But you could still consider tapping your home equity to cover a large expense. Iowa home values are up 3.9% year-over-year, according to data from Zillow. If you're able to get a lower rate on a home equity line of credit or home equity loan than you could on another type of loan, it might make financial sense.

The state of Iowa’s first-time homebuyer program is operated by the Iowa Finance Authority (IFA) and provides buyers assistance with the down payment and closing costs. 

• FirstHome Program: Through the FirstHome program, qualified homebuyers can obtain a mortgage with a below-market interest rate as well as either a $2,500 grant to put toward the down payment and closing costs or a second loan of up to 5% of the home's sales price. You must meet household income limits, which depend on the home's location and your household size.
   
• Homes for Iowans: Homes for Iowans offers a similar lower interest rate mortgage and second loan program, but is also open to repeat buyers. There’s a household income limit of $173,460 and a home purchase price limit of $665,000.
   
• Military Homeownership Assistance Program: Iowa’s Military Homeownership Assistance Program is a $5,000 grant for service members, veterans and surviving spouses that can be used toward the down payment and closing costs. The money can be used together with the FirstHome and Homes for Iowans program. You must meet eligibility requirements and work with an IFA-approved lender to qualify.