What is the average mortgage rate in Tennessee in 2026?
Around 7.46% as of October 19, 2026, in line with national average.
Best Mortgage Rates Tennessee 2026
Tennessee has no state income tax on wages, making it one of the most tax-friendly states for homebuyers. The average home value is $311,678 in 2026, below the national median, with strong demand driven by migration from higher-cost states.
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 Tennessee. Not financial advice.
Tennessee at a glance
- Average home price: $311,678
- State income tax: None (Tennessee has no broad individual income tax)
- Land transfer tax: Yes ($0.37 per $100, approximately 0.37%)
- Typical monthly payment: $1,737/mo on $311,678 with 20% down, 30-year term, at 7.46% — excludes taxes, insurance, and HOA.
Frequently Asked Questions
Does Tennessee have a real estate transfer tax?
Yes — $0.37 per $100 of sale price, approximately 0.37%.
What is the average home price in Tennessee in 2026?
$311,678 — below the national median, with Nashville significantly higher.
Does Tennessee have a state income tax?
No — Tennessee does not levy a broad individual income tax on wages or salaries, making it one of the most tax-friendly states for homebuyers.
Tennessee mortgage calculator · Educational reference only. Not financial or lending advice.