Economic and personal factors both play a part in mortgage rates in Indiana. Learning how interest rates are determined can help you find the best mortgage for you.
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The Hoosier State hasn’t seen the drastic pandemic-fueled price increases that other areas of the country have experienced. Despite the recent increase in rates, this makes Indiana a good candidate if you’re looking for affordable housing.
Like most places in the U.S., Indiana’s real estate market is tight, with low inventory and homes that last about a month on the market. Even with low prices for homes, increased interest rates can jeopardize housing affordability.
You can make your homebuying journey smoother by learning how mortgage interest rates in Indiana work, and how to get a better interest rate or homebuyer assistance in Indiana.
WEEKLY TRENDS AND INSIGHTS
On the week of September 5, 2024, the current average interest rate for a 30-year fixed-rate mortgage decreased NaN basis points from the prior week to %. The current average interest rate on a 15-year fixed-rate mortgage decreased NaN basis points from the prior week to %.
For context, a 30-year fixed-rate mortgage was NaN basis points higher a year ago. As for a 15-year fixed-rate mortgage, it was NaN basis points higher a year ago.
Several items affect whether mortgage interest rates go up or down, both across the nation and locally. On a macro level, the federal funds rate, which is set by the Federal Reserve, has a big impact on mortgage rates. This is the interest rate that banks charge each other, so it provides a floor for interest rates. These rates are then marked up for consumers.
The Federal Reserve raised interest rates in 2022 and 2023 in an effort to tame high inflation. As a result, mortgage interest rates increased during that time.
Mortgage interest rates are also connected to U.S. Treasury securities and the bond market. The interest rates on mortgages usually exceed the interest on these securities because they wouldn’t be competitive investments otherwise.
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There are several first-time homebuyer assistance programs available to Hoosiers through the Indiana Housing and Community Development Authority (IHCDA). All IHCDA programs require a nonrefundable $250 reservation fee. There are income limits that vary by census tract, so talk with your lender to see if you qualify.
Here are the programs that the IHCDA offers:
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Mortgage rates drop or rise daily, reacting to changing economic conditions, central bank policy decisions, and investor sentiment. The table below shows recent trends in mortgage rates.
Product | Interest rate | APR | ||||
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General Information and Rate Disclosures: The listings that appear on this page are from companies that pay Credible compensation. This table does not include all companies or all available products. Displayed information is valid as of Sep 07, 2024 and assumes a customer with a 750 credit score borrowing a conventional loan for a single-family, primary residence, at or near zero discount points, and a 80% loan-to-home-value ratio. For products indicated as a jumbo (e.g. 30-year fixed jumbo rate), displayed information follows the same assumptions as a conventional loan but set at loan above the conforming limit. Here is an example of your payment based on a $400,000 loan amount, for each advertised loan term:
*Payments do not include amounts for taxes and insurance premiums, your actual payment obligation will be greater. The IP address of the customer accessing this page has been used to determine which U.S state should be used for pricing. In states where Credible does not have a license to operate, we are providing information about rates available in a nearby state. If you are viewing this page from an IP address in one of the states where Credible is not licensed, the rates displayed above are for consumers located in the neighbouring state shown below: IP state without license - Assumed location Missouri - Kansas Hawaii - California Rates, payments, and all information displayed are for informational purposes only and are subject to change without notice. This is not a credit decision or commitment to lend. Mortgage rates and terms you may qualify for depend on your individual financial circumstances. Payment Disclosures: All monthly payment amounts above assume on time monthly payments each month for the full duration of the loan term (e.g. 360 monthly payments for a 30 year loan). Displayed monthly payment amounts do not include amounts for property taxes and hazard insurance. Your actual monthly payment obligation will be higher. Amounts for borrower-paid mortgage insurance premiums are included in the monthly payment if (1) the loan amount is below the “conforming thresholds” set by Fannie Mae and Freddie Mac, and (2) the loan-to-home-value ratio is greater than 80%; mortgage insurance premiums are excluded from the monthly payment if either the loan amount is above the conforming thresholds or the loan-to-home-value ratio is less than or equal to 80%. Your actual payment obligation may be higher. “Conforming thresholds” depend on the county where the property is located. Fees Disclosures: The fee amounts shown above include estimates of loan costs and closing costs you may pay in connection with a mortgage transaction with the assumptions above. This includes fees the lender charges, including points and underwriting fees, and third party services the lender does not let you shop for such as a flood certification fee. It does not include title charges, recording costs, prepaids, initial escrow deposit, and other fees. ARM Disclosures: Variable rate products, such as ARMs, have interest rates that can change over the life of the loan. Changes in the interest rate will cause required payment amounts to change.” The displayed rate and payment will be in effect for the number of years in the product’s description (e.g. 5/1 ARM means the initial rate and payment are in effect for 5 years, 7/1 means they are in effect for 7 years, etc.), after which the rate and monthly payment will change every 12 months. Last updated on Sep 07, 2024. These rates are based on the assumptions shown here. Actual rates may vary. |
You can’t do much about the average mortgage interest rate at the moment, but there are steps you can take to improve your borrower profile. Here are a few tips that could net you a better mortgage interest rate:
There are multiple varieties of mortgages in Indiana. Many of these (FHA, VA, USDA) are overseen by a federal agency and have specific guidelines. Conventional loans are backed by private lenders but must meet Fannie Mae’s regulations. Jumbo loans exceed the limits set by the Federal Housing Finance Agency, so their qualifications are set by the lender.
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