Indiana Mortgage Rates for July 2019

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In Indiana, the average rate of a 30-year fixed-rate mortgage is 4.03%. 15-year fixed-rate mortgages average around 3.52%, and 5/1 adjustable-rate mortgages (ARM) have a current average rate of 4.01%.

Loan typeAverage rateWeekly change3-month change
30-year fixed4.03%–0.03%–0.33%
15-year fixed3.52%–0.03%–0.36%
5/1 ARM4.01%–0.02%–0.12%
Rates for a $200,000 loan with 20% down payment

In most cases, buying a home involves taking on substantial mortgage debt. As a result, homebuyers have every reason to be careful in finding the right interest rate and terms for their home loan. We've assessed average rates, highs, and lows in the Hoosier State to help you set the right expectations in your search for an affordable mortgage.

Best Mortgage Rates in Indiana

In Indiana, the lowest rate offered on a 30-year mortgage is 3.50%. Among other popular loan choices, 15-year mortgages currently start at 3.00% while 5/1 ARM rates bottom out at 3.00%. If you'd like to start comparing rates that apply to you today, try filling out the form above.

Interest rates are influenced not only by your credit score but also by movement in the national economy. When it comes to mortgages in Indiana, this means that your quoted rates can change depending on the lenders you choose as well as when you enter the market. For a typical 30-year mortgage in Indiana, the highest and lowest possible rates are separated by 163 basis points.

Current Mortgage Rate Forecast for Indiana

For 2019, mortgage rates in Indiana and across the country may not rise as much as quickly as previously expected. The Federal Reserve's Open Market Committee (FOMC) recently announced that it would "be patient" and adopt a data-dependent approach when considering future rate hikes.

Line graph of average U.S. 30-year mortgage rates vs. effective federal funds rate since 2014

This represents a step away from market expectations at the end of 2018, when the FOMC last raised the target rate by 25 basis points. Currently set at a range of 2.25%-2.50%, the target federal funds rate represents the overnight rate that banks pay to borrow money for their operations. Due to the close connection of the federal funds rate to consumer loans and deposit accounts, the FOMC's periodic announcements are viewed as indicators of rate trends across the economy.

For shoppers in Indiana, the news of potentially stabilizing rates might be met with a sigh of relief, especially in front of the upcoming homebuying season. In times of rising rates, borrowers often rush to secure financing before loan costs get too high. With the FOMC announcing its intent to monitor the market for more data before continuing with future hikes, buyers can take comfort in knowing that mortgage rates are less likely to skyrocket while they're still shopping for the right property or lender.

Rates at Indiana's Most Popular Mortgage Lenders

Most homebuyers will begin looking for a mortgage at the same place they keep their checking accounts. Major banks in Indiana offer a comprehensive range of mortgage options for both purchase and refinancing. We checked on rates from the state's biggest banks to see how they measure up against the local average.

Column graph comparing 30-year mortgage rates at major Indiana banks

This one-time sample of mortgage rates in Indiana suggests that it is possible to find a range of results from among the state's most popular banks. However, it doesn't change the fact that your own credit score and debt history play a major role in shaping the offers you receive. And since each mortgage lender has its own preferences for evaluating applicants, it's not impossible that your best offer might come from a bank that reported a higher rate in this case.

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Comparing Home Loan Rates by City

While your choice of lender can affect your mortgage rate in Indiana, location does not. A quick look at the state's major cities shows that mortgage costs shouldn't vary by much, thanks to relative consistency in both property prices and local interest rates.

MSAAverage mortgage rateMedian home value
Indianapolis-Carmel-Anderson4.58%$163,666
Fort Wayne4.55%$136,954
South Bend-Mishawaka4.48%$135,669
Evansville4.56%$139,445
Average rate is for a 30-year mortgage with a 20% down payment.

Rates in Indiana's biggest cities remain consistent across the board. With the possible exception of the Indianapolis area, so does the median price of owner-occupied homes. With the cost of a mortgage dependent on both mortgage rate and total balance, the typical Hoosier should be able to count on seeing similar mortgage bills wherever they live in the state. However, it's still possible to adjust your expenses through your choice of loan type.

Evaluating Your Mortgage Options: An Example in Indiana

Most homeowners assume that they'll take on a 30-year mortgage when buying their homes, but there are other loan options that can be valid alternatives depending on the situation. To show how these work, we can use the example of a $200,000 home purchase in Indiana at current rates.

Assuming a traditional down payment of 20%, our hypothetical Hoosier homebuyer would be looking at a 30-year mortgage that costs $767 each month prior to insurance premiums and tax costs. By the end of the 30-year term, the total cost of interest on such a loan would be $115,989.

But most homeowners exit their mortgages decades before the final payment by selling and moving. If our homebuyer plans to move in just a few years, she can get a better rate through a 5/1 ARM. These loans carry a fixed rate for five years, then convert to a variable rate that moves with the market. For our example, a typical 5/1 ARM has a monthly cost of $765 in the first five years. Afterwards, payments can rise or fall each year based on your variable mortgage rate.

In other cases, homebuyers may want to achieve full ownership as quickly as possible. With a 15-year mortgage, you pay interest both at a lower rate and for a shorter period than a standard 30-year loan. The shorter term does bring higher monthly payments, but each payment reduces the principal balance more quickly. With the average 15-year fixed rate in Indiana, the monthly cost of our example rises to $765 per month while the overall amount spent on interest shrinks to $115,324.

In Indiana, the average rate of a 30-year fixed-rate mortgage is 4.03%. 15-year fixed-rate mortgages average around 3.52%, and 5/1 adjustable-rate mortgages (ARM) have a current average rate of 4.01%.

Loan typeAverage rateWeekly change3-month change
30-year fixed4.03%–0.03%–0.33%
15-year fixed3.52%–0.03%–0.36%
5/1 ARM4.01%–0.02%–0.12%
Rates for a $200,000 loan with 20% down payment

In most cases, buying a home involves taking on substantial mortgage debt. As a result, homebuyers have every reason to be careful in finding the right interest rate and terms for their home loan. We've assessed average rates, highs, and lows in the Hoosier State to help you set the right expectations in your search for an affordable mortgage.

In Indiana, the lowest rate offered on a 30-year mortgage is 3.50%. Among other popular loan choices, 15-year mortgages currently start at 3.00% while 5/1 ARM rates bottom out at 3.00%. If you'd like to start comparing rates that apply to you today, try filling out the form above.

Interest rates are influenced not only by your credit score but also by movement in the national economy. When it comes to mortgages in Indiana, this means that your quoted rates can change depending on the lenders you choose as well as when you enter the market. For a typical 30-year mortgage in Indiana, the highest and lowest possible rates are separated by 163 basis points.

For 2019, mortgage rates in Indiana and across the country may not rise as much as quickly as previously expected. The Federal Reserve's Open Market Committee (FOMC) recently announced that it would "be patient" and adopt a data-dependent approach when considering future rate hikes.

Line graph of average U.S. 30-year mortgage rates vs. effective federal funds rate since 2014

This represents a step away from market expectations at the end of 2018, when the FOMC last raised the target rate by 25 basis points. Currently set at a range of 2.25%-2.50%, the target federal funds rate represents the overnight rate that banks pay to borrow money for their operations. Due to the close connection of the federal funds rate to consumer loans and deposit accounts, the FOMC's periodic announcements are viewed as indicators of rate trends across the economy.

For shoppers in Indiana, the news of potentially stabilizing rates might be met with a sigh of relief, especially in front of the upcoming homebuying season. In times of rising rates, borrowers often rush to secure financing before loan costs get too high. With the FOMC announcing its intent to monitor the market for more data before continuing with future hikes, buyers can take comfort in knowing that mortgage rates are less likely to skyrocket while they're still shopping for the right property or lender.

Most homebuyers will begin looking for a mortgage at the same place they keep their checking accounts. Major banks in Indiana offer a comprehensive range of mortgage options for both purchase and refinancing. We checked on rates from the state's biggest banks to see how they measure up against the local average.

Column graph comparing 30-year mortgage rates at major Indiana banks

This one-time sample of mortgage rates in Indiana suggests that it is possible to find a range of results from among the state's most popular banks. However, it doesn't change the fact that your own credit score and debt history play a major role in shaping the offers you receive. And since each mortgage lender has its own preferences for evaluating applicants, it's not impossible that your best offer might come from a bank that reported a higher rate in this case.

Get Multiple Mortgage Offers at Once
Get Multiple Mortgage Offers at Once
LendingTree can help you find and compare mortgage rates, all without affecting your credit.
LendingTree is our ultimate parent company
See Offers

on LendingTree's secure website. NMLS #1136: terms and conditions apply

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While your choice of lender can affect your mortgage rate in Indiana, location does not. A quick look at the state's major cities shows that mortgage costs shouldn't vary by much, thanks to relative consistency in both property prices and local interest rates.

MSAAverage mortgage rateMedian home value
Indianapolis-Carmel-Anderson4.58%$163,666
Fort Wayne4.55%$136,954
South Bend-Mishawaka4.48%$135,669
Evansville4.56%$139,445
Average rate is for a 30-year mortgage with a 20% down payment.

Rates in Indiana's biggest cities remain consistent across the board. With the possible exception of the Indianapolis area, so does the median price of owner-occupied homes. With the cost of a mortgage dependent on both mortgage rate and total balance, the typical Hoosier should be able to count on seeing similar mortgage bills wherever they live in the state. However, it's still possible to adjust your expenses through your choice of loan type.

Comments and Questions

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Get Multiple Mortgage Offers at Once
LendingTree can help you find and compare mortgage rates, all without affecting your credit.
See Offers

on LendingTree's secure website. NMLS #1136: terms and conditions apply

Powered by
LendingTree is our ultimate parent company
Get Multiple Mortgage Offers at Once
Get Multiple Mortgage Offers at Once
LendingTree can help you find and compare mortgage rates, all without affecting your credit.
LendingTree is our ultimate parent company
See Offers

on LendingTree's secure website. NMLS #1136: terms and conditions apply

Powered by
LendingTree is our ultimate parent company