Mortgage Rates in Memphis, TennesseeMarch 2026

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

30-Year Fixed
6.72%
15-Year Fixed
5.96%
Median Home Price
$155,000
Est. Monthly Payment
$887

Memphis is a major metropolitan area in Tennessee with a population of 633,104. The current 30-year fixed mortgage rate in Memphis is 6.72%, which is 0.07% above the national average. With a median home price of $155,000 and a 20% down payment of $31,000, homebuyers can expect a monthly principal and interest payment of approximately $802.

Current Mortgage Rates in Memphis, TN

Below are the current average mortgage rates available in the Memphis 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 Fixed6.72%6.65%+0.07%
15-Year Fixed5.96%5.89%+0.07%
5/1 ARM6.22%6.15%+0.07%
FHA6.32%6.25%+0.07%
VA6.12%6.05%+0.07%
Jumbo6.92%6.85%+0.07%

Memphis Housing Market Overview

The Memphis housing market offers relatively affordable housing compared to many major cities. The median household income in Memphis is $41,864, and the cost of living index is 82.4 (national average = 100). Based on the 28% affordability rule, the median income in Memphis is sufficient to afford the median-priced home.

Population
633,104
Median Income
$41,864
Property Tax Rate
0.66%
Cost of Living
82.4
Down Payment (20%)
$31,000
Income Needed
$38,014

Monthly Payment Breakdown for Memphis

Based on the median home price of $155,000 with 20% down ($31,000), here is what you can expect to pay monthly in Memphis:

Principal & Interest (30-yr at 6.72%)$802
Property Tax$85
Estimated Insurance$39
Total Estimated Monthly$926

15-Year vs. 30-Year Mortgage in Memphis

Choosing a 15-year mortgage in Memphis at 5.96% instead of a 30-year at 6.72% would save you $100,800 in total interest over the life of the loan. However, your monthly payment would be $1,044 instead of $802 — an increase of $242 per month.

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Frequently Asked Questions About Mortgages in Memphis

What are the current mortgage rates in Memphis, TN?

As of March 2026, the average 30-year fixed mortgage rate in Memphis, Tennessee is 6.72%, while the 15-year fixed rate is 5.96%. FHA loans average 6.32% and VA loans 6.12%. These rates are 0.07% above the national average of 6.65%.

How much is a monthly mortgage payment in Memphis?

Based on the median home price of $155,000 with 20% down, the estimated monthly mortgage payment in Memphis is $802 for principal and interest. Including property taxes of $85/month, the total monthly housing cost is approximately $887.

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

Using the 28% rule, you would need an annual income of approximately $38,014 to afford the median-priced home in Memphis at $155,000. The median household income in Memphis is $41,864. The median income is currently sufficient to meet this threshold.

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

Memphis offers a below-average cost of living with a cost of living index of 82.4 (national average = 100). The property tax rate in Tennessee is 0.66%, which is below the national average. As a major city with 633,104 residents, Memphis offers diverse employment opportunities and amenities.

Mortgage Rates in Other Tennessee Cities

Nashville, TN
6.72% | $410,000
Knoxville, TN
6.72% | $255,000
Chattanooga, TN
6.72% | $255,000
Clarksville, TN
6.72% | $275,000
Murfreesboro, TN
6.72% | $365,000

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