Mortgage banks in the state of Illinois offer competitive mortgage interest rates for new home loans and mortgage refinancing. Home mortgage rates in the state over the last few months have been erratic to say the least. A 30-year fixed rate has bounced around from 4.3 percent on June 1, 2011 to 3.9 percent on Aug. 1 to 4.1 percent on Aug. 15, back down to 4 percent on Sept. 1. Illinois mortgage rates have been close to the national average, which was nearly 4.1 percent on Sept. 1.

The 30-year fixed rate is highest of all in the Chicago area where it is closer to 4.7 percent annually, down from 4.9 percent in 2010, according to the Illinois Association of Realtors. A lot of first-time buyers and investment buyers have taken advantage of lower home mortgage interest rates in 2011, the realtors association said. However, move-up buyers have not been able to handle the rates.

Just because mortgage rates average a certain amount in Illinois doesn't mean that is the precise rate. Shopping around, many mortgage brokers and banks offer lower rates to try to attract traffic, especially in tough economic times with negligible sales of new and used properties. Home mortgage rates offered by many professionals continue to hover around 3.8 percent to 3.9 percent.

Of course, rates can change on fixed rates depending on the economy as well as the amount of down payments and the buyer's credit rating. The greater the amount of down payment and better the buyer's credit history, the lower the rates. And some people, even in today's uncertain climate, continue to look at adjustable rates when they engage in mortgage refinancing and new purchase loans. These rates start out at lower to much lower than fixed-rates, but kick into rates tied to the financial index and prime interest rate that can become much higher. Generally, people who believe they will be light on cash, but want to get into a home, may go this route where they can enjoy lower rates for up to five years before seeing the rates increase.

As of Sept. 3, 2011, Illinois had 5.1 million total housing units with somewhat more than two-thirds considered owner-occupied housing units. The average home value was about $184,000 compared to the overall U.S. figure of $167,500. The average mortgage payment was $1,300 monthly.