Mortgage rates in Kentucky
Average 30-year fixed 6.49% · Updated July 9, 2026 · Freddie Mac (FRED)
Kentucky is among the more affordable states for first-time buyers. Below is what buying at Kentucky's median price looks like at today's national average rate, plus the local property tax and assistance that actually change your payment.
What a mortgage costs in Kentucky
The interest rate on a Kentucky mortgage is the same 6.49% national average a lender would quote anywhere — rates are set by the bond market, not by your state. On Kentucky's median $314,900 home with 20% down, the balance comes to $251,920, or about $1,591 a month in principal and interest.
What makes Kentucky different is the cost around the loan. Its 0.83% effective property-tax rate adds roughly $218 a month, and homeowners insurance about $118 more — bringing the all-in estimate to $1,927. Those local costs, not the interest rate, are what set Kentucky apart. Your own price and down payment will move the number — work backward from your income with the what-you-can-afford calculator.
Getting approved in Kentucky
Federal HMDA lending records show Kentucky lenders originated 100,653 home loans in 2025 and denied 32,628 applications — an approval rate near 75.5% among decisioned applications, against 76.6% nationwide. See how all 50 states compare in our approval-rate rankings, and how Kentucky ranks for mortgage complaint analysis (2,695 on record).
Shopping for a loan? See the most active mortgage lenders in Kentucky, ranked by federal HMDA volume.
Down-payment help in Kentucky
You rarely need 20% down. KHC — Kentucky's housing finance agency — runs the state's main assistance program: KHC offers regular and affordable down-payment assistance loans up to $10,000. Eligibility usually turns on income limits and a homebuyer-education course. Check current terms at KHC, see how a smaller down payment changes your number with the down-payment need calculator, or compare all state assistance programs.
Kentucky mortgage FAQ
What is the current mortgage rate in Kentucky?
As of July 9, 2026, the U.S. average 30-year fixed rate is 6.49%. The note rate itself is set nationally, not by state — a lender prices your Kentucky loan the same way it would anywhere, based on your credit, down payment and loan type.
What changes locally is everything around the rate: Kentucky's ~0.83% effective property tax, insurance costs, and which assistance programs apply.
What is the monthly payment on a typical Kentucky home?
On Kentucky's median home price of about $314,900 with 20% down at today's 6.49% average 30-year rate, expect roughly $1,927/month — that's $1,591 principal and interest plus about $218 property tax and $118 insurance. Adjust the numbers for your exact price and down payment in our calculators.
How hard is it to get approved for a mortgage in Kentucky?
In 2025, Kentucky lenders originated 100,653 home loans and denied 32,628 applications — an approval rate of about 75.5% among decisioned applications, versus 76.6% nationally, according to federal HMDA data. See how every state ranks in our mortgage approval report.
Rates shown are national weekly averages for general guidance, not an offer or personalized quote. Payment estimates assume the down payment noted plus estimated taxes and insurance. Confirm current pricing with a licensed lender.