Tennessee Mortgage Rates for June 2019

See Mortgage Rate Quotes for Your Home

$
%
Terms Apply. NMLS #1136
{"form_type":"purchase","customEventLabel":""}

By clicking "See Rates" you'll be directed to our ultimate parent company, LendingTree. Based on your creditworthiness you may be matched with up to five different lenders.

In Tennessee, the average 30-year mortgage rate is 4.45%. Tennessee's average 15-year mortgage rate is 4.02%, while the average initial rate of 5/1 adjustable-rate mortgages (ARMs) is currently 3.93%.

Loan typeAverage rateWeekly change3-month change
30-year fixed4.45%–0.03%–0.21%
15-year fixed4.02%–0.02%–0.17%
5/1 ARM3.93%–0.04%–0.09%
Rates for a $200,000 loan with 20% down payment

If you're looking to buy a home in Tennessee, you've probably noticed how mortgage rates can change on a daily basis. This makes it important for homebuyers to understand what a fair mortgage rate looks like for the amount and loan type that they're seeking. To help you get there, we've kept a close eye on current rates from the most popular home loans and lenders in the Volunteer State.

Best Mortgage Rates in Tennessee

The lowest rate for a 30-year home loan in Tennessee today is 3.75%. 15-year mortgages start from 3.13% while the best 5/1 ARMs carry an initial fixed rate of 3.13%. These figures assume a $200,000 home purchase with a down payment of 20%.

The mortgage rates that lenders quote come from a combination of factors, some of which are personal to you and others that are connected to larger economic and business considerations. Because each lender can respond to these variables in a different way, you should aim to obtain quotes from at least two or three different lenders. Doing so gives you a better chance of identifying the most reasonable offer available.

The process of comparing your mortgage quotes becomes easier if you also know what rates typically look like for the amount and type of home loan you're requesting. To get your mortgage search started on a firm footing, we've gathered information on average rates as well as the best offers currently available from Tennessee's most popular mortgage lenders.

Current Mortgage Rate Forecast for Tennessee

Interest rates were expected to continue climbing in 2019, but the Federal Open Market Committee's (FOMC) recent reversal of policy has thrown doubt on the direction of mortgage rates in Tennessee and elsewhere. The FOMC's ability to influence national rates makes its public announcements a starting point for understanding future trends.

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

The most recent increase occurred in December 2018 when the FOMC targeted a federal funds rate range of 2.25%-2.50%. As the graph shows, mortgage rates don't track perfectly with the federal funds rate. However, a decreasing federal funds rate tends to mean that consumer rates also have a greater chance of decreasing as well.

For homebuyers in Tennessee, this situation offers an opportunity to find financing at lowered rates than you might have found a few months prior. At the same time, it's difficult to predict the future behavior of interest rates with much reliability. What's certain is that mortgage rates remain at historic lows compared to previous decades, while home prices remain quite high.

Rates at Tennessee's Most Popular Mortgage Lenders

These days, more and more borrowers are turning to online lenders for a faster, more convenient mortgage experience. Nevertheless, traditional mortgage lenders continue to play a large role in determining market rates. We looked at mortgage rates from some of Tennessee's largest banks to see how they compare against each other and the state average.

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

We found a considerable range in the estimates provided by Tennessee's five major retail banks. When we apply these rates to the assumed loan amount, that gap makes a difference of thousands of dollars in interest over 30 years. Although your own quotes from these lenders will change depending on your loan amount and other financial details, our findings show that it's probably worth obtaining quotes from more than one or two banks.

Even if you prefer to look for financing online or with a non-bank mortgage lender, the rates published by these institutions can be another way for you to gauge the value of the offers you're seeing. In some cases, you may also be able to leverage this information to have more specific discussions with loan officers about the value you're looking for.

Get Multiple Mortgage Offers at Once
Get Multiple Mortgage Offers at Once
LendingTree can help you find and compare mortgage rates, all without affecting your credit.
LendingTree is our ultimate parent company
See Offers

on LendingTree's secure website. NMLS #1136: terms and conditions apply

Powered by
LendingTree is our ultimate parent company

Comparing Home Loan Rates by City

Tennessee is home to several major cities, each occupying its own economic and cultural niche within the state. To see if those differences translated into differences in housing costs, we compared both the average 30-year mortgage rate and the median value of owner-occupied property in each of Tennessee's largest metro areas.

AreaAverage mortgage rateMedian home value
Nashville-Davidson--Murfreesboro--Franklin4.60%$240,275
Memphis4.59%$160,087
Knoxville4.55%$181,215
Chattanooga4.52%$176,728
Clarksville4.55%$163,375
Average rate is for a 30-year mortgage with a 20% down payment.

While mortgage rates don't change much from city to city in the Volunteer State, the price of property can depend greatly on location. Most notably, we saw that homebuyers considering the greater Nashville area must contend with much a higher median value than those in other areas. This shows that while the cost of home financing may not be affected by location, the price of real estate is very much so.

For borrowers looking for a lower rate, it's clear that location is less of a factor than your choice of lender and loan type. Other than raising your credit score, income profile, and down payment, your control over these two factors offers the best way to obtain a mortgage that makes sense for your financial situation and future goals. To illustrate, we can look at a specific example.

Evaluating Your Mortgage Options: An Example in Knoxville

Repairing your credit history, paying down existing debt, and increasing the relative amount of your down payment are all ways to secure a lower mortgage rate. However, these methods require time and effort that you may not have if you've already agreed to purchase a home. In such a case, choosing the right type of mortgage is the best remaining way to lower your rate.

Say you're looking to buy a $200,000 home in the Knoxville area. Assuming you're bringing a down payment of 20%, the average 30-year loan rate would be 4.55%, leading to a lifetime interest total of $133,565 and a minimum monthly payment of $816. Most homebuyers find the 30-year option to be good enough for their needs.

However, it's also true that few 30-year mortgages are carried all the way to maturity. In particular, younger families often find it necessary to move within the first decade. For them, an ARM loan offers lower initial rates that last for the first few years of the term. In Knoxville, a 5/1 ARM averages at 3.93% for the first five years. This results in a monthly cost of at least $758.

However, ARM loans can be risky because they expose you to an adjustable rate if you hang onto the mortgage past its initial fixed-rate period. If your priority is to pay down your debt, cramming your payment into a shorter 15-year term raises your monthly costs but cuts your total expense. In Tennessee, a typical 15-year fixed-rate mortgage would currently cost $1,186 per month in our example. However, it would also cost only $53,319 in lifetime interest.

In Tennessee, the average 30-year mortgage rate is 4.45%. Tennessee's average 15-year mortgage rate is 4.02%, while the average initial rate of 5/1 adjustable-rate mortgages (ARMs) is currently 3.93%.

Loan typeAverage rateWeekly change3-month change
30-year fixed4.45%–0.03%–0.21%
15-year fixed4.02%–0.02%–0.17%
5/1 ARM3.93%–0.04%–0.09%
Rates for a $200,000 loan with 20% down payment

If you're looking to buy a home in Tennessee, you've probably noticed how mortgage rates can change on a daily basis. This makes it important for homebuyers to understand what a fair mortgage rate looks like for the amount and loan type that they're seeking. To help you get there, we've kept a close eye on current rates from the most popular home loans and lenders in the Volunteer State.

The lowest rate for a 30-year home loan in Tennessee today is 3.75%. 15-year mortgages start from 3.13% while the best 5/1 ARMs carry an initial fixed rate of 3.13%. These figures assume a $200,000 home purchase with a down payment of 20%.

The mortgage rates that lenders quote come from a combination of factors, some of which are personal to you and others that are connected to larger economic and business considerations. Because each lender can respond to these variables in a different way, you should aim to obtain quotes from at least two or three different lenders. Doing so gives you a better chance of identifying the most reasonable offer available.

The process of comparing your mortgage quotes becomes easier if you also know what rates typically look like for the amount and type of home loan you're requesting. To get your mortgage search started on a firm footing, we've gathered information on average rates as well as the best offers currently available from Tennessee's most popular mortgage lenders.

Interest rates were expected to continue climbing in 2019, but the Federal Open Market Committee's (FOMC) recent reversal of policy has thrown doubt on the direction of mortgage rates in Tennessee and elsewhere. The FOMC's ability to influence national rates makes its public announcements a starting point for understanding future trends.

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

The most recent increase occurred in December 2018 when the FOMC targeted a federal funds rate range of 2.25%-2.50%. As the graph shows, mortgage rates don't track perfectly with the federal funds rate. However, a decreasing federal funds rate tends to mean that consumer rates also have a greater chance of decreasing as well.

For homebuyers in Tennessee, this situation offers an opportunity to find financing at lowered rates than you might have found a few months prior. At the same time, it's difficult to predict the future behavior of interest rates with much reliability. What's certain is that mortgage rates remain at historic lows compared to previous decades, while home prices remain quite high.

These days, more and more borrowers are turning to online lenders for a faster, more convenient mortgage experience. Nevertheless, traditional mortgage lenders continue to play a large role in determining market rates. We looked at mortgage rates from some of Tennessee's largest banks to see how they compare against each other and the state average.

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

We found a considerable range in the estimates provided by Tennessee's five major retail banks. When we apply these rates to the assumed loan amount, that gap makes a difference of thousands of dollars in interest over 30 years. Although your own quotes from these lenders will change depending on your loan amount and other financial details, our findings show that it's probably worth obtaining quotes from more than one or two banks.

Even if you prefer to look for financing online or with a non-bank mortgage lender, the rates published by these institutions can be another way for you to gauge the value of the offers you're seeing. In some cases, you may also be able to leverage this information to have more specific discussions with loan officers about the value you're looking for.

Get Multiple Mortgage Offers at Once
Get Multiple Mortgage Offers at Once
LendingTree can help you find and compare mortgage rates, all without affecting your credit.
LendingTree is our ultimate parent company
See Offers

on LendingTree's secure website. NMLS #1136: terms and conditions apply

Powered by
LendingTree is our ultimate parent company

Tennessee is home to several major cities, each occupying its own economic and cultural niche within the state. To see if those differences translated into differences in housing costs, we compared both the average 30-year mortgage rate and the median value of owner-occupied property in each of Tennessee's largest metro areas.

AreaAverage mortgage rateMedian home value
Nashville-Davidson--Murfreesboro--Franklin4.60%$240,275
Memphis4.59%$160,087
Knoxville4.55%$181,215
Chattanooga4.52%$176,728
Clarksville4.55%$163,375
Average rate is for a 30-year mortgage with a 20% down payment.

While mortgage rates don't change much from city to city in the Volunteer State, the price of property can depend greatly on location. Most notably, we saw that homebuyers considering the greater Nashville area must contend with much a higher median value than those in other areas. This shows that while the cost of home financing may not be affected by location, the price of real estate is very much so.

For borrowers looking for a lower rate, it's clear that location is less of a factor than your choice of lender and loan type. Other than raising your credit score, income profile, and down payment, your control over these two factors offers the best way to obtain a mortgage that makes sense for your financial situation and future goals. To illustrate, we can look at a specific example.

Comments and Questions

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Get Multiple Mortgage Offers at Once
LendingTree can help you find and compare mortgage rates, all without affecting your credit.
See Offers

on LendingTree's secure website. NMLS #1136: terms and conditions apply

Powered by
LendingTree is our ultimate parent company
Get Multiple Mortgage Offers at Once
Get Multiple Mortgage Offers at Once
LendingTree can help you find and compare mortgage rates, all without affecting your credit.
LendingTree is our ultimate parent company
See Offers

on LendingTree's secure website. NMLS #1136: terms and conditions apply

Powered by
LendingTree is our ultimate parent company