Every market update deserves one clear headline, and this month's is simple: mortgage rates are at their highest point of the year, and the big forecasts just moved up to match. Freddie Mac's survey released September 17 put the average 30-year fixed rate at 6.95%, up from 6.76% a week earlier and from 6.71% the week before that, a fourth straight weekly gain. The 15-year averaged 6.26%, up from 6.09% the prior week. A year ago, the 30-year sat at about 6.26%. One note up front, the same one I give every update: no finalized September MLS dataset is published yet, so the town figures below come from the most recent available city and county reports, and those sources vary by methodology. My job is to tell you what the numbers mean for you, not just recite them.
Two things changed this month
The first is the rate itself, and the second is the outlook. Nationally, existing-home sales fell to a 14-month low as rates approached 7%, yet the National Association of REALTORS describes the market as remarkably stable, with year-to-date sales still running about 2.4% ahead of last year. Translation: buyers are still moving, they are just choosier and more payment sensitive.
The forecasts matter even more. Earlier this year, several outlooks pointed to rates easing below 6% by late 2026. Those forecasts are off the table now. Fannie Mae's September outlook sees the 30-year averaging about 6.8% by the end of this year and easing only to about 6.7% across 2027. The Mortgage Bankers Association raised its fourth-quarter forecast to 6.8% as well, holding that level through mid-2027, and both groups trimmed their mortgage origination forecasts. The practical takeaway: if you have been waiting for a big rate drop before making a move, plan as if rates stay near where they are, and let your own numbers decide instead of a forecast.
What 6.95% means for your payment
Here is the rate made concrete. On a $350,000 mortgage, the difference between a year ago (about 6.26%) and today (6.95%) is roughly $160 more a month in principal and interest, about $1,900 over a year. That is real money, and it explains why the best-prepared buyers win: they know their reliable payment, they are pre-approved, and they are ready to move when the right home appears.
The county picture
On the Illinois side, Cook County's August read shows a median sale price near $383,716, up about 5.1% year over year, with more than 43% of homes selling above asking and active listings down about 4%. That is not a soft market. Will County's freshest closed-sale figure is a July median near $372,700, with sales down roughly 13% from a year earlier, while Zillow's average home value tracks near $376,800, up about 2.7%. More supply in Will, firmer pricing in Cook: the two-county story still rewards honest pricing and good presentation.
Illinois town reads
Frankfort's most recent report, published September 15, puts the median near $629,607, up about 7.6% year over year with about 50 days on market, yet Redfin's July figure for the same town sits near $629,585 with a price change of negative 5.2%. The medians agree, the trend lines do not, which is exactly why I read more than one tracker. Orland Park holds at a three-month median near $385,000, up about 5.5%, with about 44 days on market. Tinley Park's freshest Redfin read is near $309,000, down about 1.9% year over year, with about 45 days on market, a reminder that even neighboring towns move differently. Mokena's median runs near $464,692, up about 3.3%, and the share of Mokena homes selling above asking has fallen from about 58% a year ago to 37% today. New Lenox went the other way: about 52% of homes sold above asking, up nearly 19 points from a year earlier, with Redfin's median near $485,000, up about 9%. Lemont runs near $518,000, down about 1.9%, with homes selling in about 39 days, and Evergreen Park holds near $320,000 on a three-month basis with an average sale price up about 13% year over year.
Indiana town reads
Across the state line, Indiana's statewide median came in near $282,000 in August, up about 3% year over year, with sales down a few points and inventory up about 13%. Lake County's Redfin median sale price runs near $284,000, up about 5.2%, while Zillow's average home value sits near $254,097, up about 1.7%. Crown Point's median sold price lands between about $324,500 and $330,000 depending on the source, with about 2.4 months of supply and roughly 42 days on market, a balanced, healthy market. Munster's September list-price median is near $392,000, up about 1%, with mid-year sale medians near $362,000 to $375,000. St. John's three-month median sale price runs near $440,000, up about 5.2%. Schererville's Redfin median sits near $350,000, up about 3%, while list prices have softened about 11% year over year, which gives ready buyers room to negotiate. Valparaiso runs between about $349,000 and $365,000 depending on the measure, with about 54 days on market. Highland still moves fast, with a June median near $265,874, up about 1.5%, about 14 days on market and roughly 36% of homes selling above list. Cedar Lake keeps climbing, a three-month median between about $338,000 and $342,000, up about 18% year over year, while Dyer sits near $288,000, down less than 1%, and Portage holds near $296,000 to $300,000 with homes going pending in about 10 days.
What this means for sellers
At 6.95%, buyers feel the rate before they feel the house, so an overpriced listing costs you the very buyers you need. In the South Suburbs, where inventory keeps growing, your opening price is your most powerful tool, and condition and presentation decide how quickly the right buyer shows up. In Northwest Indiana towns where list prices have softened, honest pricing still wins the weekend. The same town can run hot on one street and slow on the next, which is exactly why a personalized pricing conversation beats a website's average.
What this means for buyers
Higher inventory, more realistic sellers and more negotiating room: this is a more buyer-friendly fall than we have seen in a couple of years in many of the communities I serve. The trade-off is the rate, yet the math often surprises people who stop waiting and run it. Get pre-approved, know your payment, and be ready to act, because well-priced homes in good condition still do not linger. New Lenox and Cedar Lake prove that every week.
One more thing
I am licensed in both Illinois and Indiana, so I can compare the South Suburbs and Northwest Indiana in a single conversation, property taxes included. If you are weighing a move, sizing up your equity, or getting ready to list, I would love to run the numbers with you and build a plan that fits your timeline. Call me at (708) 252-1490 or schedule a call any time. You Can With Joanne!™