Mortgage Rates in Louisville, KentuckyMarch 2026

Updated March 2026 | Based on Louisville market data and regional lending conditions

30-Year Fixed
6.74%
15-Year Fixed
5.98%
Median Home Price
$215,000
Est. Monthly Payment
$1,263

Louisville is a major metropolitan area in Kentucky with a population of 633,045. The current 30-year fixed mortgage rate in Louisville is 6.74%, which is 0.09% above the national average. With a median home price of $215,000 and a 20% down payment of $43,000, homebuyers can expect a monthly principal and interest payment of approximately $1,114.

Current Mortgage Rates in Louisville, KY

Below are the current average mortgage rates available in the Louisville area as of March 2026. Rates vary by lender, credit score, and loan-to-value ratio. Use our free calculator above to see your personalized estimate.

Loan TypeRateNational AvgDifference
30-Year Fixed6.74%6.65%+0.09%
15-Year Fixed5.98%5.89%+0.09%
5/1 ARM6.24%6.15%+0.09%
FHA6.34%6.25%+0.09%
VA6.14%6.05%+0.09%
Jumbo6.94%6.85%+0.09%

Louisville Housing Market Overview

The Louisville housing market offers relatively affordable housing compared to many major cities. The median household income in Louisville is $52,267, and the cost of living index is 89.3 (national average = 100). Based on the 28% affordability rule, you would need an income of approximately $54,129 to comfortably afford the median-priced home in Louisville, which exceeds the current median household income.

Population
633,045
Median Income
$52,267
Property Tax Rate
0.83%
Cost of Living
89.3
Down Payment (20%)
$43,000
Income Needed
$54,129

Monthly Payment Breakdown for Louisville

Based on the median home price of $215,000 with 20% down ($43,000), here is what you can expect to pay monthly in Louisville:

Principal & Interest (30-yr at 6.74%)$1,114
Property Tax$149
Estimated Insurance$54
Total Estimated Monthly$1,317

15-Year vs. 30-Year Mortgage in Louisville

Choosing a 15-year mortgage in Louisville at 5.98% instead of a 30-year at 6.74% would save you $140,040 in total interest over the life of the loan. However, your monthly payment would be $1,450 instead of $1,114 — an increase of $336 per month.

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Frequently Asked Questions About Mortgages in Louisville

What are the current mortgage rates in Louisville, KY?

As of March 2026, the average 30-year fixed mortgage rate in Louisville, Kentucky is 6.74%, while the 15-year fixed rate is 5.98%. FHA loans average 6.34% and VA loans 6.14%. These rates are 0.09% above the national average of 6.65%.

How much is a monthly mortgage payment in Louisville?

Based on the median home price of $215,000 with 20% down, the estimated monthly mortgage payment in Louisville is $1,114 for principal and interest. Including property taxes of $149/month, the total monthly housing cost is approximately $1,263.

What income do I need to buy a home in Louisville?

Using the 28% rule, you would need an annual income of approximately $54,129 to afford the median-priced home in Louisville at $215,000. The median household income in Louisville is $52,267. This means most households would need to either earn above the median or consider homes below $215,000.

Is Louisville a good place to buy a home in 2026?

Louisville offers a below-average cost of living with a cost of living index of 89.3 (national average = 100). The property tax rate in Kentucky is 0.83%, which is near the national average. As a major city with 633,045 residents, Louisville offers diverse employment opportunities and amenities.

Mortgage Rates in Other Kentucky Cities

Lexington, KY
6.74% | $265,000
Bowling Green, KY
6.74% | $235,000
Owensboro, KY
6.74% | $175,000
Covington, KY
6.74% | $195,000

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Last updated: March 2026. Rates are approximate averages based on regional lending data for the Louisville, Kentucky area. Individual rates may vary by lender, credit score, loan amount, and other factors. Use our free calculator for a personalized estimate.