Happy New Year!
Looking ahead to 2026, economists expect a more balanced housing market with improving affordability, supported by rising inventory, modest price growth, slightly higher sales, and average mortgage rates around 6.3%. While sellers still hold an edge, buyers are gaining negotiating power as supply and demand even out.
In Central Indiana, strong communities, top-rated schools, and convenient lifestyles continue to drive demand. With Realtor.com projecting Midwest markets to outperform most of the country, the outlook remains steady and encouraging for both buyers and sellers.
From National Data to Local Impact
County | Median Price 2025 | Projected 2026 Growth | Estimated Median Price 2026 |
|---|---|---|---|
Hamilton | ~$450,000 | 5-8% | ~$475,000-$485,000 |
Marion | ~$300,000 | 4-6% | ~$315,000-$320,000 |
Hendricks | ~$360,000 | 5-7% | ~$380,000-$385,000 |
Johnson | ~$330,000 | 5-7% | ~$345,000-$355,000 |
Boone | ~$400,000 | 5-8% | ~$420,000-$430,000 |
Hancock | ~$350,000 | 5-7% | ~$370,000-$375,000 |
Morgan | ~$290,000 | 4-6% | ~$300,000-$310,000 |
Madison | ~$210,000 | 3-5% | ~$215,000-$220,000 |
But... What About the Rates?
We asked Dan Bergman from Guild Mortgage to explain how the recent rate cuts may or may not impact mortgage rates.
Fed Rate Cuts Explained: Why Mortgage Rates Haven't Dropped
You may have heard that the Federal Reserve recently cut interest rates. Many assume this means mortgage rates will drop, but that's not true. Here's what you need to know.
Why Fed Rate Cuts Don't Lower Mortgage Rates
- Mortgage rates change daily based on market expectations, not just Fed decisions.
- Markets usually anticipate Fed moves ahead of time.
Current Market Snapshot
- Mortgage rates have stayed steady between 6.5% and 7.5% for months.
- The Fed is expected to make only one more rate cut by early 2026.
What Could Change Rates?
Upcoming economic reports could shake things up.
- Jobs Report: a weak job market could push rates down.
- Inflation Report (CPI): high inflation could push rates up.
Bottom line: mortgage rates aren't directly controlled by the Fed. For now, expect rates to stay about the same unless major changes happen in jobs or inflation.
6 Ways to Refresh Your Home in the New Year
Declutter One Space at a Time
Start small: a drawer, a closet, or your entryway. Clearing out what you don't use instantly makes your home feel lighter and more organized.
Swap Out Soft Goods
New throw pillows, blankets, or curtains can completely change the feel of a room. Stick to neutral tones or soft textures for an easy refresh.
Refresh Your Walls
A fresh coat of paint or a new accent wall can make a big impact. Light, warm neutrals are perfect for creating a clean, cozy feel.
Update Your Lighting
Change out lampshades, add a floor lamp, or switch to warmer light bulbs to instantly make your space feel more inviting.
Bring the Outdoors In
Houseplants or fresh greenery add life and warmth to any room, even just one statement plant can make a difference.
Style With Intention
Rotate decor you already own, layer coffee table books, or add a tray to corral everyday items. Small styling tweaks can make your home feel brand new.
Listing Spotlight
3082 Wildcat Lane, Indianapolis
Listing Agent: Carrie Jack
Midtown Home Collective
(317)-410-0749
[email protected]
