Mortgage rates in Tennessee
Average 30-year fixed 6.49% · Updated July 9, 2026 · Freddie Mac (FRED)
Nashville has been one of the South’s hottest housing markets. Below is what buying at Tennessee'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 Tennessee
The interest rate on a Tennessee 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 Tennessee's median $435,500 home with 20% down, the balance comes to $348,400, or about $2,200 a month in principal and interest.
What makes Tennessee different is the cost around the loan. Its 0.66% effective property-tax rate adds roughly $240 a month, and homeowners insurance about $163 more — bringing the all-in estimate to $2,603. Those local costs, not the interest rate, are what set Tennessee apart. Your own price and down payment will move the number — work backward from your income with the home affordability tool.
Getting approved in Tennessee
Federal HMDA lending records show Tennessee lenders originated 176,247 home loans in 2025 and denied 52,016 applications — an approval rate near 77.2% among decisioned applications, against 76.6% nationwide. See how all 50 states compare in our approval-rate research, and how Tennessee ranks for servicer complaint data (6,493 on record).
Shopping for a loan? See the most active mortgage lenders in Tennessee, ranked by federal HMDA volume.
Down-payment help in Tennessee
You rarely need 20% down. THDA — Tennessee's housing finance agency — runs the state's main assistance program: The Great Choice Plus program offers up to 6% in down-payment assistance. Eligibility usually turns on income limits and a homebuyer-education course. Check current terms at THDA, see how a smaller down payment changes your number with the down-payment amount calculator, or compare down-payment help across the country.
Tennessee mortgage FAQ
What is the current mortgage rate in Tennessee?
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 Tennessee loan the same way it would anywhere, based on your credit, down payment and loan type.
What changes locally is everything around the rate: Tennessee's ~0.66% effective property tax, insurance costs, and which assistance programs apply.
What is the monthly payment on a typical Tennessee home?
On Tennessee's median home price of about $435,500 with 20% down at today's 6.49% average 30-year rate, expect roughly $2,603/month — that's $2,200 principal and interest plus about $240 property tax and $163 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 Tennessee?
In 2025, Tennessee lenders originated 176,247 home loans and denied 52,016 applications — an approval rate of about 77.2% 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.