INDIANAPOLIS (WISH) — Mortgage rates are staying flat but more homes are for sale, according to new data from F.C. Tucker’s August housing market report.

Dan Brown, a realtor with FC Tucker, joined “Daybreak” on Tuesday for the monthly Real Estate Rundown, where he broke down the August report.

Interest rates

Rates were flat through August after falling through the summer and are expected to trend lower as we head into the fall months.

“Remember, interest rates really peaked hard last year at almost 8%,” he said. “But, you know, we’re on the other side of the mountain, so to speak. We’ve been coming back down.”

Currently at 6.35% on average, Brown says these are the lowest rates in a year and a half.  If they drop into the 5% range, they’ll be the lowest they have been in two years.

Prices

Prices ticked up as expected with the lower interest rates, though they remained below June’s record high for central Indiana.

The metro counties were up 3% over the previous month and up nearly 7% since last year.

Inventory

Inventory continues to improve with over 5,600 homes for sale in central Indiana. That’s up 25% for the year and the best selection for buyers since December 2019. 

The pace that inventory sold, also known as monthly supply, is up by a full third over last year and is approaching pre-pandemic levels.

“We haven’t seen this many houses for sale since 2019 – we have almost 6,000 houses for sale,” Brown said. “Comparatively, on an even market, that should be about 10,000. We’re not there yet, but during the pandemic, we were under 2,000. It’s three times what we saw three years ago. It gives us a little bit more time and selection.”

Advice

Do your homework and shop rates among lenders, many of whom will offer incentives or reduce their rates at different times.

Remember that waiting too long might cost more per month. On the average home, a rate reduction of half-percent has the same effect on your payment as $10,000 in price.