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Indianapolis Mortgage Rates Today

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Current Mortgage Rates in Indianapolis

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Indianapolis housing market at a glance

September 2026 data

In Indianapolis, homes are selling in about 66 days (17 slower than a year ago), sales are up 18.5% from last year, and about 31% of listings have had a price cut.

Median sale price
$269,000
$154 per sq. ft.
Homes sold
5,281
▲ 18.5% vs. 4,457 last year
Days on market
66
vs. 49 days last year
Homes for sale
5,541
371 new listings
Listings with a price cut
31%
1,718 of 5,541 listings

Source: Movoto Indianapolis, IN market trends, September 2026. Last updated October 5, 2026.

What it costs to buy a home in Indianapolis

Monthly payments on Indianapolis's median home price of $269,000 (September 2026), at today's rates.

20% down · Conventional
$1,948/mo
Down payment
$53,800
Loan amount
$215,200
Rate
7.250%
Principal & interest
$1,468
Est. property tax
$213
Est. homeowners insurance
$267
5% down · Conventional
$2,224/mo
Down payment
$13,450
Loan amount
$255,550
Rate
7.250%
Principal & interest
$1,743
Est. property tax
$213
Est. homeowners insurance
$267
3.5% down · FHA
$2,215/mo
Down payment
$9,415
Loan amount
$264,128
Rate
6.875%
Principal & interest
$1,735
Est. property tax
$213
Est. homeowners insurance
$267

Payments include principal, interest, estimated Indianapolis property taxes, and estimated homeowners insurance. They do not include mortgage insurance (PMI or FHA monthly MIP), which applies with less than 20% down, or HOA dues. The FHA loan amount includes the 1.75% upfront mortgage insurance premium. These are examples based on the median price, not the sample loan used in the rate table above.

How much income do you need to buy a home in Indianapolis?

A common lender guideline is to keep your total housing payment (principal, interest, estimated Indianapolis property taxes, and estimated homeowners insurance) at or below 28% of your gross monthly income. Gross income is what you earn before taxes and other deductions come out of your paycheck. Based on that guideline, here's the yearly household income needed for Indianapolis's $269,000 median home:

20% down · Conventional$1,948/mo payment $83,499/yrabout $6,958/mo before taxes
5% down · Conventional$2,224/mo payment $95,296/yrabout $7,941/mo before taxes
3.5% down · FHA$2,215/mo payment $94,946/yrabout $7,912/mo before taxes

Why this matters: Keeping housing costs near 28% of your income leaves room for other bills, savings and the upkeep that comes with owning a home. It's a planning guideline, not a hard limit.

What lenders look at: Lenders also look at your debt-to-income (DTI) ratio, which adds your car, student loan and credit card payments to the new mortgage payment. Depending on the loan program and your credit, many lenders allow total debts of roughly 43% to 50% of gross income, so you may qualify with less income than shown, or need more if you carry other debt.

Household income counts: If you're buying with a partner or co-borrower, lenders can combine your incomes.

How rates change your payment

Principal and interest on a $215,200 loan (the Indianapolis median price with 20% down). Every 0.25% is worth about $36/mo.

Rate6.25%6.50%6.75%7.00%7.25%
today		7.50%
Monthly P&I$1,325$1,360$1,396$1,432$1,468$1,505

Ways to make a Indianapolis home more affordable

  • Negotiate on price. About 31% of Indianapolis listings have had a price cut, so many sellers are open to offers.
  • Ask for seller concessions. Homes take 66 days to sell, 17 more than last year. Sellers may cover closing costs or pay for a rate buydown.
  • Consider buying down your rate. On this example loan, a rate 0.5% lower saves about $72 a month.
  • Compare loan types. FHA rates are at 6.875% vs. 7.250% for conventional, with as little as 3.5% down. Compare by APR, including mortgage insurance.

Indianapolis mortgage and home buying FAQs

What are mortgage rates in Indianapolis today?

As of October 9, 2026, Lower’s 30-year fixed conventional rate in Indianapolis is 7.250% (7.516% APR), and the 30-year FHA rate is 6.875% (7.699% APR). Your rate depends on your credit, down payment, loan type and any points you pay. See the rate table above for points and full details.

What is the monthly payment on a median-priced home in Indianapolis?

On Indianapolis’s $269,000 median home price (September 2026), a 30-year conventional loan with 20% down at 7.250% comes to about $1,948 a month, including principal, interest, estimated Indianapolis property taxes, and estimated homeowners insurance. With an FHA loan and 3.5% down, it’s about $2,215 a month before monthly mortgage insurance.

How much income do I need to buy a house in Indianapolis?

To keep housing costs at 28% of gross (pre-tax) income, you’d need a household income of about $83,499 a year to buy Indianapolis’s $269,000 median home with 20% down, or about $94,946 with an FHA loan and 3.5% down. Lenders also consider your other debts, so the income you need may be higher or lower.

How much do I need for a down payment in Indianapolis?

On the $269,000 median home, 20% down is $53,800, 5% down is $13,450, and the FHA minimum of 3.5% is $9,415. Putting less than 20% down usually means paying mortgage insurance. You’ll also need money for closing costs.

Is it a buyer’s or seller’s market in Indianapolis right now?

In September 2026, Indianapolis homes sold in about 66 days, 17 days slower than a year earlier. 5281 homes sold, up from 4457 the year before, and about 31% of the 5541 homes for sale have had a price cut. Slower sales and frequent price cuts generally give buyers more room to negotiate than a year ago.

How much does a quarter-point rate change affect payments in Indianapolis?

On a $215,200 loan (the median Indianapolis home with 20% down), each 0.25% change in rate moves the principal and interest payment by about $36 a month, or about $436 a year.

How much are property taxes in Indianapolis?

Lower estimates Indianapolis property taxes at about 0.95% of a home’s value per year. On the $269,000 median home, that’s roughly $2,555 a year, or $213 a month. Your actual bill depends on your assessed value and any exemptions.

Market data: Movoto, September 2026. Homeowners insurance estimates are based on average annual premiums in Indianapolis from The Zebra; your quote will vary. Rates as of October 9, 2026. Examples only; not an offer of credit. Your rate and payment depend on your credit, down payment, loan type and other factors.

Find Out Why Indianapolis Loves Lower

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