If you're contemplating the purchase of a home in the Hoosier State, you're certainly not alone. According to data from the U.S. Census Bureau's 2019 American Community Survey, Indiana boasts approximately 2.9 million housing units and a homeownership rate of 69.3%. The typical housing value in the state hovers around $185,805, which falls below the national median home sales price of $329,000. It's worth noting that Indiana's real estate market exhibits regional variations, providing a diverse range of options for its 6.8 million residents.
Furthermore, the Consumer Financial Protection Bureau's Consumer Credit Panel reveals a burgeoning mortgage market, marked by an 8% increase in new mortgages from April 2018 to April 2019.
For those curious about current mortgage rates, it's worth noting that rates have been on an upward trajectory for the fourth consecutive week, as reported by the Mortgage Bankers Association. The 30-year fixed rate, for instance, has surpassed 7.5%. Both fixed and adjustable mortgage rates have followed suit, aligning with the rising yields on 10-year Treasury bonds. While many anticipated a decline in mortgage interest rates throughout 2023, they have remained elevated well into the third quarter of the year. As of October 4th, the prevailing mortgage rates are as follows:
- 30-year fixed: 7.53% with 0.8 points (compared to the previous week's 7.41% with 0.71 points).
- 15-year fixed: 6.86% with 1.14 points (compared to the previous week's 6.73% with 1.17 points).
- 5/1 ARM: 6.49% with 1.21 points (compared to the previous week's 6.47% with 1.58 points).
- 30-year jumbo loans: 7.51% with 0.74 points (compared to the previous week's 7.34% with 0.78 points).
- 30-year FHA loans: 7.29% with 1.01 points (compared to the previous week's 7.16% with 0.96 points).
For Indiana residents embarking on their homeownership journey, several homebuyer programs offer valuable assistance, including mortgage interest tax credits, down payment assistance, and help with closing costs. Here are some notable programs:
1. First Place
- Eligibility: First-time homebuyers or those purchasing in a qualified area.
- Income limits: Vary by county.
- First-time homebuyers only: Yes, unless the property is in a qualified census track or targeted area.
- Loan options: FHA 30-year fixed mortgage.
- Down payment and closing cost assistance: 6% of the purchase price.
2. Next Home
- Income limits: Vary by county.
- First-time homebuyers only: No, unless the buyer combines the Next Home FHA loan with the Mortgage Credit Certificate as a combination program.
- Loan options: FHA 30-year fixed mortgage.
- Down payment and closing cost assistance: 3.5% of the purchase price.
3. Mortgage Credit Certificate
- Benefit: A federal income tax credit that can help homebuyers reduce their federal income tax liability and boost their qualifying income.
- Income limits: Vary by county.
- First-time homebuyers only: Yes, unless you are a qualified veteran or the property falls within a qualified census track or targeted area.
In summary, Indiana presents a vibrant housing market, though with varying dynamics across regions. Current mortgage rates have displayed an upward trend, defying earlier expectations of a decline. For prospective homebuyers, an array of homebuyer programs can provide crucial assistance with down payments and closing costs. These programs aim to enhance affordability and access to homeownership for Indiana residents, making it a promising destination for aspiring homeowners.