What is the average mortgage rate in Iowa in 2026?
Around 7.46% as of October 19, 2026, in line with national average.
Best Mortgage Rates Iowa 2026
Iowa offers highly affordable housing relative to the national average, with an average home value of $227,764 in 2026. Iowa simplified its income tax to a flat 3.8% rate in 2026.
30-year fixed
7.46%
National avg
15-year fixed
6.82%
National avg
5/1 ARM
6.82%
National avg
| Product | Rate (APR) |
|---|---|
| 30-year fixed (national avg) | 7.46% |
| 15-year fixed (national avg) | 6.82% |
| 5/1 ARM (national avg) | 6.82% |
Rates verified Oct 21, 2026
Rates shown are national benchmark averages from the site data file, not live quotes from lenders. Confirm pricing with banks and brokers in Iowa. Not financial advice.
Iowa at a glance
- Average home price: $227,764
- State income tax: Yes (3.8% flat rate in 2026)
- Land transfer tax: Yes ($0.80 per $500, approximately 0.16%)
- Typical monthly payment: $1,269/mo on $227,764 with 20% down, 30-year term, at 7.46% — excludes taxes, insurance, and HOA.
Frequently Asked Questions
Does Iowa have a real estate transfer tax?
Yes — Iowa charges $0.80 per $500 of sale price, approximately 0.16% — relatively low.
What is the average home price in Iowa in 2026?
$227,764 — well below the national median, offering strong affordability.
How much do I need to earn to afford a home in Iowa?
To afford $227,764 with 20% down at 7.46%, you need approximately $55,000–$55,000 annual income.
Iowa mortgage calculator · Educational reference only. Not financial or lending advice.