Opinions, analyses, reviews, or recommendations expressed here are the author’s alone, and have not been reviewed or endorsed by the companies. We may be compensated through affiliate programs. For a full list of our advertisers, see our disclosure page.

Iowa Mortgage Rates for February 2019

In Iowa, the current average rate on a 30-year mortgage is 4.66%. The average rate of 15-year fixed-rate mortgages is currently 4.20%, while 5/1 adjustable-rate mortgages in Iowa (ARM) average at 4.15%.

Loan typeAverage rateWeekly change3-month change
30-year fixed4.66%–0.03%–0.22%
15-year fixed4.20%–0.03%–0.20%
5/1 ARM4.15%–0.01%–0.05%
Rates for a $200,000 loan with 20% down payment

For most people, getting a mortgage is an essential part of owning a home. Taking on hundreds of thousands in debt can be daunting, but an affordable interest rate goes a long way towards reducing that financial burden. We keep track of mortgage rates in the Hawkeye State so that you'll know what to expect in your search for a fair deal.

Best Mortgage Rates in Iowa

The lowest available rate on a 30-year fixed-rate mortgage is 4.00%. Iowa's 15-year mortgages run as low as 3.63%, while the lowest initial rate for 5/1 ARMs is 3.13%.

The mortgage rates you're quoted depend on a mix of individual and external factors. Individual elements like income, credit score and debt history give lenders an idea of how risky you are as a borrower. Riskier applications receive higher rate offers. However, your choice of lender, loan type, and timing relative to the economy can also push rates one way or the other.

If you're trying to find the best mortgage rates possible, you'll need to address both sets of factors. While improving your individual profile is a straightforward question of improving your credit score and reducing other debt, the external variables can be harder to manage. Our research should give you a better sense of the rate differences among Iowa lenders and loan types as well as the timing of your mortgage decision.

Current Mortgage Rate Forecast for Iowa

For 2019, mortgage rates in Iowa and the rest of the country may not rise as much as quickly as previously predicted. The Federal Reserve's Open Market Committee (FOMC) recently announced that it would "be patient" and adopt a data-dependent approach when considering future rate hikes.

Line graph of average U.S. 30-year mortgage rates vs. effective federal funds rate since 2014

This marks a step away from the forecast at the end of 2018, when the FOMC last raised the target rate by 25 basis points. Currently set at a range of 2.25%-2.50%, the target federal funds rate represents the overnight borrowing rate that banks pay to fund their operations. Due to the correlation of the federal funds rate with consumer loans and deposit accounts, the FOMC's periodic announcements are viewed as indicators of future rate trends in the U.S. economy.

For shoppers in Iowa, the news of steadying rates might be met with a sigh of relief, especially in front of the upcoming homebuying season. In times of rising rates, borrowers often rush to secure financing before loan costs get too high, which can end in a sub-optimal result for all parties involved. With the FOMC announcing its intent to tread carefully before continuing with future hikes, buyers can take comfort in knowing that mortgage rates are less likely to spike while they're still shopping for the right property or lender.

Rates at Iowa's Most Popular Mortgage Lenders

Mortgage rates in Iowa are provided by hundreds of banks, direct lenders, and other financial companies. To gauge the competitiveness of the market, we collected mortgage rate estimates from several of the state's most popular banks using a generic lender profile.

Column graph comparing 30-year mortgage rates at major Iowa banks

While the rates above will change over time, they make it clear that Iowa's lenders offer a range of possible rates. Every lender sets its own business priorities and underwriting standards, which produce different numbers even when we submit the same loan details to each. Given this variation in interest rates, it makes sense to get quotes from a number of different lenders before you make any decision.

Comparing Home Loan Rates by City

Since rates change substantially according to lender, we continued our examination of Iowa's mortgage environment with a survey of loan rates from different areas of the state. We also took the opportunity to compare the median price of homes in those areas.

MSAAverage mortgage rateMedian home value
Des Moines-West Des Moines4.87%$181,389
Davenport-Moline-Rock Island4.84%$139,227
Cedar Rapids4.87%$156,579
Waterloo-Cedar Falls4.82%$147,097
Average rate is for a 30-year mortgage with a 20% down payment.

Like most places, Iowa's cities experience greater differences in property values than in available mortgage rates. Technology has made it increasingly easy for borrowers to connect with lenders anywhere, and national interest rates tend to have similar effects on every state. In contrast, the price of property is deeply connected to its location. For homebuyers in Iowa, it makes much more sense to compare places in terms of prices than mortgage rates.

Evaluating Your Mortgage Options: An Example in Des Moines

We've seen how lender choice and location relate to mortgage rates, but neither factor matters as much as your own decisions about the type of loan you take. To see how mortgage type affects your monthly payment, we can use a hypothetical home purchase in Des Moines at $200,000.

Assume that we have a 20% down payment, leading to a starting loan balance of $160,000. At today's rates for a 30-year home loan in Des Moines, we would pay at least $847 per month on that loan. In the end, total interest costs reach $145,699. While most homeowners find that the 30-year mortgage works fine for their needs, borrowers with specific goals may find an advantage in taking on a different loan type.

For instance, some buyers plan their mortgage around a short-term living situation. If you plan to move in just a few years, it's possible to pay the lower fixed rate on a 5/1 ARM without any fear of the variable rate that kicks in five years later. For our Des Moines purchase, the monthly payment on a 5/1 ARM would start at $778, with the possibility of rising or falling annually after five years.

If you want to pay down the full mortgage as quickly as possible, a 15-year fixed-rate mortgage might be superior. At Iowa's current average rate, such a loan would cost us $1,200 per month, but just $55,929 over the full 15 years. The higher monthly cost of this shorter loan may be challenging, but if it fits your budget there are few better ways to drop your mortgage rate.

In Iowa, the current average rate on a 30-year mortgage is 4.66%. The average rate of 15-year fixed-rate mortgages is currently 4.20%, while 5/1 adjustable-rate mortgages in Iowa (ARM) average at 4.15%.

Loan typeAverage rateWeekly change3-month change
30-year fixed4.66%–0.03%–0.22%
15-year fixed4.20%–0.03%–0.20%
5/1 ARM4.15%–0.01%–0.05%
Rates for a $200,000 loan with 20% down payment

For most people, getting a mortgage is an essential part of owning a home. Taking on hundreds of thousands in debt can be daunting, but an affordable interest rate goes a long way towards reducing that financial burden. We keep track of mortgage rates in the Hawkeye State so that you'll know what to expect in your search for a fair deal.

The lowest available rate on a 30-year fixed-rate mortgage is 4.00%. Iowa's 15-year mortgages run as low as 3.63%, while the lowest initial rate for 5/1 ARMs is 3.13%.

The mortgage rates you're quoted depend on a mix of individual and external factors. Individual elements like income, credit score and debt history give lenders an idea of how risky you are as a borrower. Riskier applications receive higher rate offers. However, your choice of lender, loan type, and timing relative to the economy can also push rates one way or the other.

If you're trying to find the best mortgage rates possible, you'll need to address both sets of factors. While improving your individual profile is a straightforward question of improving your credit score and reducing other debt, the external variables can be harder to manage. Our research should give you a better sense of the rate differences among Iowa lenders and loan types as well as the timing of your mortgage decision.

For 2019, mortgage rates in Iowa and the rest of the country may not rise as much as quickly as previously predicted. The Federal Reserve's Open Market Committee (FOMC) recently announced that it would "be patient" and adopt a data-dependent approach when considering future rate hikes.

Line graph of average U.S. 30-year mortgage rates vs. effective federal funds rate since 2014

This marks a step away from the forecast at the end of 2018, when the FOMC last raised the target rate by 25 basis points. Currently set at a range of 2.25%-2.50%, the target federal funds rate represents the overnight borrowing rate that banks pay to fund their operations. Due to the correlation of the federal funds rate with consumer loans and deposit accounts, the FOMC's periodic announcements are viewed as indicators of future rate trends in the U.S. economy.

For shoppers in Iowa, the news of steadying rates might be met with a sigh of relief, especially in front of the upcoming homebuying season. In times of rising rates, borrowers often rush to secure financing before loan costs get too high, which can end in a sub-optimal result for all parties involved. With the FOMC announcing its intent to tread carefully before continuing with future hikes, buyers can take comfort in knowing that mortgage rates are less likely to spike while they're still shopping for the right property or lender.

Mortgage rates in Iowa are provided by hundreds of banks, direct lenders, and other financial companies. To gauge the competitiveness of the market, we collected mortgage rate estimates from several of the state's most popular banks using a generic lender profile.

Column graph comparing 30-year mortgage rates at major Iowa banks

While the rates above will change over time, they make it clear that Iowa's lenders offer a range of possible rates. Every lender sets its own business priorities and underwriting standards, which produce different numbers even when we submit the same loan details to each. Given this variation in interest rates, it makes sense to get quotes from a number of different lenders before you make any decision.

Since rates change substantially according to lender, we continued our examination of Iowa's mortgage environment with a survey of loan rates from different areas of the state. We also took the opportunity to compare the median price of homes in those areas.

MSAAverage mortgage rateMedian home value
Des Moines-West Des Moines4.87%$181,389
Davenport-Moline-Rock Island4.84%$139,227
Cedar Rapids4.87%$156,579
Waterloo-Cedar Falls4.82%$147,097
Average rate is for a 30-year mortgage with a 20% down payment.

Like most places, Iowa's cities experience greater differences in property values than in available mortgage rates. Technology has made it increasingly easy for borrowers to connect with lenders anywhere, and national interest rates tend to have similar effects on every state. In contrast, the price of property is deeply connected to its location. For homebuyers in Iowa, it makes much more sense to compare places in terms of prices than mortgage rates.

Comments and Questions