Mortgage Rates Are Back Above 7%. Here's What It Really Costs an Indy Buyer (and How to Fight Back)
If you've been watching mortgage rates this fall, you've noticed they went the wrong direction. Freddie Mac's weekly survey on October 22 put the average 30-year fixed rate at 7.32%. This time last year it was around 6.3%. The Federal Reserve raised its benchmark rate in September, and it meets again this week, so a lot of buyers are asking me the same thing: is it still worth buying right now?
Let's put real numbers on it, and then talk about the leverage buyers have that they didn't have a year ago.
What a 1% jump actually costs on a southside home
Say you're buying a $250,000 home in Franklin Township or Greenwood with 5% down. That's a $237,500 loan.
At 6.34% (about where rates were a year ago): roughly $1,476 a month in principal and interest
At 7.32% (today's average): roughly $1,631 a month
That's about $155 more per month, or around $1,860 a year, before taxes and insurance. It's real money. It's also closer to a car payment than a deal-breaker for a lot of households, and it's only half the story.
You have more leverage than buyers did last year
Higher rates have slowed things down, and slower markets favor buyers who are ready to move.
Homes in the Indy metro sat a median of about 33 days on market in the first half of 2026, nearly 8 days longer than a year earlier.
On the southwest side (46241), there were 31 active listings and just 1 pending sale in early October. That's a market where buyers can compare options and negotiate.
Sellers who need to move are more open to concessions, repairs and closing cost help than they were in the bidding-war years.
4 ways to take the sting out of a 7% rate
Ask for a seller-paid rate buydown instead of a price cut. A $5,000 concession used to buy down your rate can lower your monthly payment more than $5,000 off the price. Have your lender run both options side by side before you write the offer.
Look at a temporary buydown. A 2-1 buydown lowers your rate for the first two years, which gives you breathing room while you settle in, and possibly time for rates to come down so you can refinance.
Shop at least three lenders on the same day. Rates and fees vary more than most people think. A quarter point difference on a $237,500 loan is worth thousands over a few years.
Buy the house you can afford at today's rate. If rates drop, a refinance is a bonus. If they don't, you're still comfortable. Never stretch on the hope that rates will bail you out.
So should you wait?
My honest take: if you're financially ready and you find the right home, waiting for lower rates usually means competing with every other buyer who was waiting for the same thing. When rates fall, buyers flood back in and the leverage you have today disappears. If you're not ready yet, use this time to clean up credit, build savings, and get pre-approved so you can move when the right house shows up.
Thinking about buying on the southside or anywhere in central Indiana? Call or text me at 317-629-0070 and I'll run the numbers for your situation, including what a buydown could do for your payment.
Paul Linn | DeBoor Group | Brokered by Real Broker, LLC | 317-629-0070 | Paul@SoldByPaulLinn.com
Rates cited are Freddie Mac's Primary Mortgage Market Survey averages as of October 22, 2026. Payment examples are illustrative, principal and interest only, and not a loan offer. Talk to a licensed lender for a quote.
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