Michigan Real Estate & Mortgage Market Update: December 2025
As we wrap up 2025, the Michigan housing market continues to adjust to higher interest rates, steady demand, and more thoughtful buyers. While the pace has slowed compared to past years, opportunities still exist for buyers, sellers, and homeowners who plan strategically.
Mortgage Rates Today
Mortgage rates are holding in the mid-6% range for most 30-year fixed loans. While higher than past lows, rates have become more stable, allowing buyers and sellers to plan with confidence.
What this means:
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Buyers are focused on monthly payments, not just rates
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Negotiation and seller concessions are more common
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Many buyers are purchasing now with plans to refinance later
Michigan Home Prices & Inventory
In much of Michigan, home prices have stabilized. Desirable areas still see strong demand, but homes must be priced correctly and well-presented to sell.
Sellers:
Well-priced homes are still moving, especially when sellers offer incentives like closing cost credits or rate buydowns.
Buyers:
You have more leverage than in previous years — inspections, appraisals, and negotiations are back.
Buy Now or Wait?
For many, waiting for lower rates may not improve affordability if prices rise or competition increases. Buying based on lifestyle needs and financial comfort — rather than headlines — continues to be the smartest approach.
Looking Ahead to 2026
Rates are expected to remain higher than historic lows, making planning more important than timing. Preparation, market knowledge, and expert guidance can make all the difference.
Thinking About Buying or Selling in Michigan?
With experience in both real estate and mortgage strategy, I help clients navigate today’s market with confidence and clarity.
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