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Good News For Indianapolis Home Buyers: Mortgage Rates Still Low

Indianapolis REALTORS® are reporting that there are signs of the market picking up for Indianapolis real estate. Buyers are still interested in Indianapolis homes for sale and trying to take advantage of the last few breaths of the $8000 First-time Home Buyer Tax Credit. Indiana buyers are also anxious to secure the low mortgage rates we are witnessing in today’s market.

Conflicting reports are coming from different sources. While pending home sales reports are showing that perhaps things are looking up, other reports looking at just home sales numbers showed that perhaps everything is not so positive. One factor that does continue to look positive for the real estate market right now is low interest rates for mortgages.

Currently low mortgage rates are holding stable for Indianapolis buyers at the same levels that have been recorded for the last three months. With these low mortgage rates being offered, buyers may be wondering if the time to act is now. Below is a synopsis of what the rates have been doing for the last part of September to help you decide if you should bite the bullet and take advantage of that $8000 tax credit now.

For fixed-rate mortgages, at the 30-year level the average for the week ending September 24 was just above 5 percent. According to Freddie Mac, this held stable from the previous week and was down a percent from the same time last year.

At the 15-year level, the rate averaged at nearly 4.5 percent, again nearly unchanged from the previous week. Faring significantly better than the same time last year, this average was down over a percent from 2008.

The 5-year Treasury-indexed adjustable-rate loans saw an average similar to the 15-year fixed, just over 4.5 percent. Again, this is stable from the previous week but down significantly from just over 6 percent last year.

The 1-year Treasury-indexed adjustable-rate loans also averaged at just over 4.5 percent, slightly down from last week and down a half percent from last year.

The rates followed for this survey represent buyers having an 80% loan-to-value ratio or lower, securing loans acceptable for Freddie Mac purchase. Buyers looking for larger or riskier loans than Freddie Mac approves or having lesser down payments may encounter higher rates than these numbers reflect.