Last updated: October 19, 2026 · By Robyn Flowers, Broker Associate, Berkshire Hathaway HomeServices Starck Real Estate

Should you sell your home in fall 2026 with mortgage rates over 7%?
For many homeowners in the southwest suburbs of Chicago, yes. In September 2026, 27% of U.S. home buyers paid cash, home prices hit a September record, and the average homeowner with a mortgage held about $310,000 in equity. Your own mortgage and equity decide whether it makes sense for you.

Key takeaways

  • The 30-year mortgage rate averaged 7.40% in mid-October 2026, the highest since November 2023 (Freddie Mac).
  • Cash buyers made up 27% of existing-home sales in September 2026, so more than 1 in 4 buyers didn't need a mortgage (NAR).
  • The national median home price was $417,500 in September 2026, a record for that month (NAR).
  • The Chicago Metro Area median price was $401,000 in July 2026, up 6.8% from a year earlier, with inventory down 11.9% (Illinois REALTORS®).
  • Selling still isn't right for everyone. A free calculator lets you check your own numbers.

Mortgage rates are up. Freddie Mac's 30-year average hit 7.40% on October 8, 2026 and held there the following week. That's the highest it has been since November 2023.

So the question I keep getting from homeowners in Orland Park, Mokena, New Lenox, Frankfort, Homer Glen and Palos Park is fair: does anyone still buy a house at 7.4%?

Short answer: yes. Here are seven reasons selling this fall might still make sense. No hype. If waiting is the smarter move for you, the numbers will say so.

Run your own numbers with my seller calculator →

7 reasons selling your home this fall might make sense

1. More than 1 in 4 buyers paid cash

Cash sales were 27% of all existing-home sales in September 2026, according to the National Association of REALTORS®. Cash buyers aren't affected by mortgage rates at all.

Cash offers also tend to mean fewer moving parts: no lender appraisal requirement, no loan approval to wait on, and often a quicker close.

2. Home prices are at record highs

The national median existing-home price was $417,500 in September 2026, the highest on record for that month and the 39th straight month of year-over-year gains.

In the Chicago area, the metro median price was $401,000 in July 2026, up 6.8% from a year earlier, according to Illinois REALTORS®. Selling near the top of a price cycle is not a bad place to be.

3. Most homeowners have significant equity

The average U.S. homeowner with a mortgage held about $310,000 in equity in the second quarter of 2026, according to Cotality.

Straight talk: Cotality also reports the Midwest runs below that average. The national number is a conversation starter, not your number. Your number is in the calculator.

4. Chicago-area supply is still tight, but national supply is growing

In July 2026, Chicago Metro Area inventory was down 11.9% from a year earlier. Fewer homes for sale in Cook County and Will County means less competition for yours.

Nationally, inventory just hit its highest level since November 2019. Markets don't stay tight forever. Listing while local competition is still thin beats listing after it catches up.

5. Waiting for rates to drop is a bet, not a plan

Rates rose for several weeks in a row to reach 7.40%. NAR chief economist Lawrence Yun noted that the recent increases mean fewer buyers can qualify.

If rates rise further, the buyer pool shrinks again. If they fall, more buyers come back, along with more sellers who were also waiting. Nobody can promise which happens first. I won't pretend to.

6. Buyers are still in the market

First-time buyers made up 31% of September 2026 sales, up from 30% a year earlier. Investors and second-home buyers rose to 20%, up from 15%.

There are fewer buyers overall. But the ones shopping in October are the ones who need to move, not the ones browsing for fun.

7. If you're buying next, you gain negotiating leverage

Yun has pointed out that rising inventory and longer marketing times are giving buyers more negotiating power. Homes nationally sat a median of 33 days in September 2026, up from 31 in August.

So you sell while prices are high, then buy where you can negotiate on price, repairs, or closing costs. For move-out sellers and downsizers especially, that combination can work in your favor.

When does selling this fall not make sense?

I'd rather lose a listing than talk you into a bad move. Selling this fall may not be right if:

  • You have a 3% rate, you love the house, and you have no reason to move. Stay put.
  • Your next payment would jump more than your budget can carry. Run the calculator first.
  • Your home needs major mechanical work. In the southwest suburbs, buyers look hard at the furnace, A/C, water heater, roof and electrical. Sometimes it's smarter to fix first, sometimes to price for it. That's a conversation, not a guess.

How much would you walk away with if you sold?

My free seller calculator shows your estimated cash after selling and your new monthly payment at today's rates. Enter what your home could sell for, what you still owe, and what you'd buy next. It takes about two minutes.

Open the seller calculator →

Frequently asked questions

Are homes still selling in the southwest suburbs of Chicago with rates above 7%?

Yes. Buyers are more selective and pricing matters more than it did in 2021, but homes that are priced right with updated mechanicals still sell. Nationally, 27% of buyers paid cash in September 2026.

Should I wait for mortgage rates to drop before selling my house?

Maybe, if you don't need to move. When rates fall, more sellers list too, which adds competition. Waiting is a bet on timing, so run your numbers both ways before deciding.

How much does it cost to sell a house in Illinois?

It depends on the town, your mortgage, and the deal you negotiate. Typical costs include commission, title charges, state and county transfer taxes, some municipal fees, and prorated property taxes, which in Illinois are paid in arrears. Ask for a net sheet before you list.

What percentage of home buyers pay cash?

In September 2026, 27% of existing-home sales in the U.S. were all-cash, down from 30% a year earlier, according to NAR.

What is the median home price in the Chicago area in 2026?

The Chicago Metro Area median sale price was $401,000 in July 2026, up 6.8% year over year, according to Illinois REALTORS®. Prices vary widely by town.

About the author

Robyn Flowers is a Broker Associate with Berkshire Hathaway HomeServices Starck Real Estate, serving the southwest and south suburbs of Chicago, including Orland Park, Palos Park, Frankfort, Mokena, New Lenox, Lockport, Homer Glen, Downers Grove and Lisle. She works with first-time buyers, downsizers, condo and townhome buyers, and sellers relocating out of state.

Want your actual number? The calculator gets you close. A real net sheet, built from your home, your town's fees and recent sales near you, gets you the truth. Call or text 708-522-3409, or book a time here.

Sources

Calculator results are estimates only, not a loan estimate or commitment to lend. Consult a licensed lender for financing figures.