Mortgage rates jumped this week. The national average on a 30-year fixed went from 6.76% to 6.95% — the kind of move that makes people put their house hunt on hold.
Before you do, it is worth knowing what that jump actually costs on a Southern Illinois house. Because the answer is different here than it is in the places those headlines are written about.
What 0.19% Costs You Per Month
| Loan amount | At 6.76% (last week) | At 6.95% (this week) | Difference per month |
|---|---|---|---|
| $120,000 | $779 | $794 | +$15 |
| $160,000 | $1,039 | $1,059 | +$20 |
| $200,000 | $1,299 | $1,324 | +$25 |
| $240,000 | $1,558 | $1,589 | +$30 |
Principal and interest only, 30-year fixed, using the national weekly averages. Illustrative — not a rate quote. Taxes, insurance and any HOA are not included.
On a $200,000 loan — which buys a lot of house in Williamson County — this week’s jump is about $25 a month.
That is real money and we are not going to pretend it isn’t. Over the full thirty years it adds up to roughly $9,100 in extra interest, if you never refinance. But it is also not the difference between a house you can afford and one you can’t. If $25 a month breaks the budget, the budget was already too tight.
Myth 1: “The Rate Is What Matters Most”
On the payment, the price usually matters more than the rate — especially at Southern Illinois prices.
⚖️ The Trade-Off, on a $200,000 Loan at 6.95%
- $5,000 off the price saves about the same per month as a rate 0.25% lower.
- $10,000 off the price saves about the same per month as a rate 0.50% lower.
Half a point of rate is a big national move that you have no control over. Ten thousand dollars off a house is a negotiation — and one you can actually have.
That connects to something we published yesterday. In Carterville, homes under $200,000 have been sitting roughly twice as long as homes above that price — a 143-day median against 72. A seller who has been on the market since spring is in a very different frame of mind from one who listed last Tuesday. That is where negotiating room tends to live, and it is worth more than waiting for rates to fall.
Myth 2: “I’ll Just Wait for Rates to Come Down”
Maybe they will. We don’t know, and neither does anyone who tells you confidently that they do. This week they went up. A year ago the same average was 6.26%.
The honest way to think about waiting:
- If you buy now and rates fall later, you can usually refinance — that costs money in closing costs, so it only makes sense if the drop is large enough, but the option exists.
- If you wait and prices rise, there is no refinance for the price. You pay it for the life of the loan.
- If you wait and rates fall, more buyers come back into the market at the same moment you do. The houses with 143 days on them today may not be sitting then.
None of that means “buy now no matter what.” It means the rate alone is a poor reason to wait, and a poor reason to rush.
Myth 3: “Principal and Interest Is My Payment”
It isn’t, and in Illinois this is the one that catches people.
Every number in the table above leaves out property taxes and homeowner’s insurance, which are paid into escrow as part of your monthly payment on most loans. Illinois property taxes are among the highest in the country, and on some Southern Illinois houses the tax and insurance portion is a sizable share of the total payment.
We are not going to quote you a tax figure here, because it varies house to house and the published estimate on a listing can be wrong — especially if the current owner has exemptions that go away when they sell. Ask for the actual tax bill on any house you are serious about. Jarod will build it into your real number.
Myth 4: “A Higher Rate Means I Qualify for Less”
This one is true — but by less than people expect. Lenders qualify you on the total monthly payment against your income. A $25-a-month change shifts that math a little, not a lot. If you were pre-qualified a month ago, your number has probably moved only slightly. It is still worth a quick refresh before you write an offer, so you are not surprised.
If you have never been pre-qualified, that is the first step, and it costs nothing. It is also what a seller’s agent will ask about before they take your offer seriously.
📞 Get Your Real Number, Not the National Average
Every figure on this page is an illustration. Your actual rate depends on your credit, your down payment, the loan program and the property. Jarod can run the real numbers on a house you are actually looking at — including the taxes and insurance that the national averages leave out. Free, and no pressure.
The Short Version
- This week’s rate jump costs about $15–$30 a month on typical Southern Illinois loan sizes.
- $10,000 off the price is worth about as much as half a point off the rate — and price is something you can negotiate.
- Nobody can reliably time rates. You can refinance a rate. You cannot refinance a price.
- Taxes and insurance are a real part of the payment in Illinois. Get the actual tax bill.
📱 Got a Question About This Market? Text Greg.
Buying? Selling? Not sure where to start? Text Greg Holthaus directly — just tell him you saw his blog. He'll help you think through your decision, match you with the best broker for your situation, and point you in the right direction. He's open to a text any time.
Text Greg · 618.925.8654
Who is Greg Holthaus?
Greg Holthaus is the Owner and Designated Managing Broker of Southern Illinois Realty Experts, with 25+ years in Southern Illinois real estate and more than 10,000 transactions closed. He leads a full-service operation — home sales, mortgage, title, and property management under one roof — with offices in Marion, Herrin, and Carbondale. Meet Greg ›
About the numbers: Rates are the Freddie Mac Primary Mortgage Market Survey® national weekly averages for the week of September 17, 2026 (30-year fixed 6.95%, prior week 6.76%, one year earlier 6.26%), checked September 19, 2026. All payment figures are illustrative: principal and interest only on a 30-year fixed-rate loan at the stated rate, rounded to the nearest dollar, and exclude property taxes, homeowner’s insurance, mortgage insurance and any HOA dues. The price-versus-rate equivalences are calculated on a $200,000 loan at 6.95%. The 30-year interest figure assumes the loan is held to term without refinancing or prepayment. Your actual rate depends on credit, down payment, loan program, property and market conditions on the day you lock. Carterville time-on-market figures are from our September 18 analysis of active listings in ZIP 62918. This is not a loan offer, a rate quote, a commitment to lend, or a guarantee of eligibility. Jarod Sanders · CrossCountry Mortgage, LLC · NMLS #2337228. Southern Illinois Realty Experts is an Equal Housing Opportunity brokerage.