Indianapolis HousingGauge — August 10, 2026 | YELLOW 53

Welcome to the Indianapolis HousingGauge, your weekly local market report for the week of August 10, 2026.

Here is the headline. Indianapolis's HousingGauge score is 53 out of 100, which puts the market in the YELLOW zone. Conditions have weakened over the past three months, and financing remains expensive.

Three developments stand out this week.

First: Score down 6 points over 13 weeks. The score moved from 59 to 53 over the past 13 weeks, driven mainly by Demand Trend (+4.8 points).

Second: Mortgage rates up 0.32 points in three months. The 30-year fixed rate averages 6.69%, versus 6.37% three months ago.

Third: Homes selling more slowly. The median home takes 21 days to sell, 16.7% longer than a year ago.

Now, what is behind the score?

Mortgage Conditions scores 28 out of 100. The 30-year fixed rate averages 6.69%, up 0.58 percentage points over six months. Financing remains expensive, limiting affordability for leveraged buyers.

Supply & Buyer Leverage scores 47 out of 100. Inventory is 12.0% higher than a year ago (3,156 active listings), with 2.8 months of supply. Homes take a median 21 days to sell at 98.2% of list price, and 38.2% of listings have had a price cut. Negotiating leverage is fairly balanced between buyers and sellers.

Monetary Conditions scores 61 out of 100. The real policy rate is 1.24%, 0.15 points above the estimated neutral rate (r-star) of 1.09% — a near neutral stance. The fed funds rate is unchanged over six months.

Demand Trend scores 57 out of 100. Pending sales are 4.9% higher than a year ago and closed sales are 1.3% higher. Days on market are 16.7% longer than a year ago. Demand is steady.

Valuation & Affordability scores 81 out of 100. The median home costs 3.9 times the median household income. Principal and interest on a typical purchase would take 24.2% of that income at current rates. Inflation-adjusted prices are 1.1% lower than a year ago. Valuations look comparatively reasonable.

Local Economy scores 52 out of 100. Local unemployment is 3.7% and employment is down 0.7% year over year. The local job market is steady.

Rental Economics scores 66 out of 100. A year of median rent equals 6.4% of the median price (a price-to-rent ratio of 15.7). Rents are up 2.1% year over year. Rental economics are comparatively strong.

The score is unchanged from last week's report. Over 13 weeks it is down 6 points, from 59 to 53. The largest contributors were Demand Trend (+4.8 points) and Supply & Buyer Leverage (−4.1 points).

So what would move Indianapolis into the green? It would take several changes together: 30-year mortgage rate falls below 5.55% (now 6.69%); the Fed cuts more than 0.75 pts over six months (now −0.01 pts); policy gap (real policy rate minus r-star) narrows below −0.95 pts (now +0.15 pts); months of supply rises above 5.0 months (now 2.8 months); pending sales grow more than 15.0% year over year (now +4.9%); and mortgage rates fall more than 0.30 pts over three months (now +0.32 pts).

And what could make conditions worse? Watch for these together: 30-year mortgage rate rises above 7.30% (now 6.69%); pending sales fall more than 3.0% year over year (now +4.9%); the Fed raises rates more than 0.40 pts over six months (now −0.01 pts); policy gap (real policy rate minus r-star) widens above +0.75 pts (now +0.15 pts); and months of supply falls below 1.6 months (now 2.8 months).

That is the Indianapolis HousingGauge for this week. The HousingGauge score describes market conditions. It is not a recommendation to buy or sell, and it is not individualized financial advice. For charts, sources and the full methodology, visit housinggauge.com. Thanks for listening.