Michigan Mortgage Rates for September 2019

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In Michigan, the current average for a 30-year fixed-rate mortgage is 3.85%. The 15-year fixed-rate averages at 3.39%, while the 5/1 adjustable-rate mortgage (ARM) average is 3.64%.

Loan typeAverage rateWeekly change3-month change
30-year fixed3.85%–0.01%–0.38%
15-year fixed3.39%–0.01%–0.37%
5/1 ARM3.64%–0.02%–0.26%
Rates for a $200,000 loan with 20% down payment

Mortgage rates throughout Michigan change from day to day, which complicates the process of finding the best deal for your home purchase or refinance. Since home loans usually involve hundreds of thousands of dollars, even a few percentage points off your rate can mean a significant discount on the cost of owning a home. Our research team compared rates across different lenders, loan types, and cities in the Wolverine State.

Best Mortgage Rates in Michigan

Currently, the best rate you can find for a 30-year mortgage in Michigan is 3.25%. If you're considering a 15-year mortgage or 5/1 ARM, Michigan lenders offer rates as low as 2.75% and 2.63% respectively.

You'll encounter a range of possible results on mortgage rates in Michigan. Our data on 30-year loan rates in the state show a spread of 150 basis points between the best and worst published rates. On a mortgage of $200,000, that means a difference of $49,790 spent on interest over 30 years.

Current Mortgage Rate Forecast for Michigan

For 2019, mortgage rates across Michigan and the remainder of the country may not rise as much as previously anticipated. The Federal Reserve's Open Market Committee (FOMC) recently announced that it would and adopt a data-dependent "wait-and-see" approach to future rate hikes, which may indicate a reduction in the frequency of rate hikes experts were predicting in 2018.

Line graph of average U.S. 30-year mortgage rates vs. effective federal funds rate since 2014

Currently set at a range of 2.25%-2.50%, the target federal funds rate represents the overnight borrowing rate for banks to fund their operations. Due to the relationship between the federal funds rate and interest rates offered on consumer loans and deposits, analysts often view the FOMC's periodic announcements as indicators of future rate trends. Partially tied to this are long-term mortgage rates, which tend to fluctuate alongside short-term rates. Differences may exist between the two because of consumer demand, credit considerations and expenses incurred through the lending process.

For homebuyers in Michigan, the news of a possible stabilization in rates creates some breathing room for a more relaxed shopping process. In times of rising rates, shoppers often rush to secure financing before interest rates rise too much. With the FOMC announcing its intent to closely monitor market conditions prior to implementing additional hikes, buyers can take comfort in the knowledge that mortgage rates are less likely to spike while they're shopping for the right home.

Rates at Michigan's Most Popular Mortgage Lenders

One easy way to start comparing your mortgage options is by considering what major lenders are offering in your market. To help you get a sense of current home loan rates in Michigan, we surveyed and compared rate data from some of the state's largest banks.

Column graph comparing 30-year mortgage rates at major Michigan banks

Unlike most other states we looked at, Michigan is home to a diverse set of rates at its biggest mortgage lenders. While major brands like Chase and Chemical Bank tend to offer similar 30-year rates, there was a significant gap of 62.5 basis points between the lowest and highest recorded rates. Since these examples assume a fairly large down payment of 20% and a loan amount of $200,000, it's possible that you may see different numbers on your own quotes.

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Comparing Home Loan Rates by City

Location usually influences real estate prices more than it does your mortgage rate, but we tracked the average rate data for a few of Michigan's most popular areas to see if any places stood out in particular. We also plugged in the median home value of each place to calculate a rough monthly cost for each.

MSAAverage mortgage rateMedian home value
Detroit-Warren-Dearborn4.54%$160,316
Grand Rapids-Wyoming4.55%$170,007
Lansing-East Lansing4.58%$151,987
Flint4.48%$190,633
Ann Arbor4.46%$157,079

As the data show, there isn't much variation in terms of mortgage rate regardless of where you live in Michigan. Your loan type, credit history and debt profile have a much larger say in determining the rates lenders will offer you. A few percentage points of difference in a 30-year mortgage rate won't lead to drastic changes in monthly costs.

Housing prices are another story, with a wide margin between the lowest median values in the state (Lansing-East Lansing) and the highest (Flint). Combining the average rate data with these median values illustrates how the price—and by extension the location—of your home has a far larger effect on your monthly principal and interest than local variations in rate.

Evaluating Your Mortgage Options: An Example in Detroit

With so many types of financing available, it's easier to adjust your housing costs by choosing the right loan rather than scrounging for a slightly lower rate quote. To see how this works in an actual loan scenario, let's consider the impact of different mortgage types on a $200,000 home purchase in Detroit.

The most common mortgage is the 30-year fixed-rate loan, which averages at 3.85% in Detroit. Assume that the homebuyer provides a 20% down payment of $40,000. This leaves a balance of $160,000 to be paid off over 30 years, at a monthly rate of $751 and a lifetime total of $110,034 in interest.

However, many homeowners end up selling and moving out in just a few years. If you want a mortgage that lowers your interest in the short term, a 5/1 ARM usually offers lower rates for the first five years. In Michigan, that also means a reduced monthly cost of $732. However, it's possible for ARM rates to increase after the initial fixed period, which presents a risk for borrowers who hold onto their loans past that point.

If you're more concerned with paying off the full mortgage balance as soon as possible, a 15-year loan might be appropriate. In our example, a 15-year mortgage at 3.39% would incur monthly principal and interest of $1,136—substantially more than the 30-year loan. However, the final interest cost of $44,334 is far less than what you spend in a standard scenario.

In Michigan, the current average for a 30-year fixed-rate mortgage is 3.85%. The 15-year fixed-rate averages at 3.39%, while the 5/1 adjustable-rate mortgage (ARM) average is 3.64%.

Loan typeAverage rateWeekly change
30-year fixed3.85%–0.01%
15-year fixed3.39%–0.01%
5/1 ARM3.64%–0.02%
Rates for a $200,000 loan with 20% down payment

Mortgage rates throughout Michigan change from day to day, which complicates the process of finding the best deal for your home purchase or refinance. Since home loans usually involve hundreds of thousands of dollars, even a few percentage points off your rate can mean a significant discount on the cost of owning a home. Our research team compared rates across different lenders, loan types, and cities in the Wolverine State.

Currently, the best rate you can find for a 30-year mortgage in Michigan is 3.25%. If you're considering a 15-year mortgage or 5/1 ARM, Michigan lenders offer rates as low as 2.75% and 2.63% respectively.

You'll encounter a range of possible results on mortgage rates in Michigan. Our data on 30-year loan rates in the state show a spread of 150 basis points between the best and worst published rates. On a mortgage of $200,000, that means a difference of $49,790 spent on interest over 30 years.

For 2019, mortgage rates across Michigan and the remainder of the country may not rise as much as previously anticipated. The Federal Reserve's Open Market Committee (FOMC) recently announced that it would and adopt a data-dependent "wait-and-see" approach to future rate hikes, which may indicate a reduction in the frequency of rate hikes experts were predicting in 2018.

Line graph of average U.S. 30-year mortgage rates vs. effective federal funds rate since 2014

Currently set at a range of 2.25%-2.50%, the target federal funds rate represents the overnight borrowing rate for banks to fund their operations. Due to the relationship between the federal funds rate and interest rates offered on consumer loans and deposits, analysts often view the FOMC's periodic announcements as indicators of future rate trends. Partially tied to this are long-term mortgage rates, which tend to fluctuate alongside short-term rates. Differences may exist between the two because of consumer demand, credit considerations and expenses incurred through the lending process.

For homebuyers in Michigan, the news of a possible stabilization in rates creates some breathing room for a more relaxed shopping process. In times of rising rates, shoppers often rush to secure financing before interest rates rise too much. With the FOMC announcing its intent to closely monitor market conditions prior to implementing additional hikes, buyers can take comfort in the knowledge that mortgage rates are less likely to spike while they're shopping for the right home.

One easy way to start comparing your mortgage options is by considering what major lenders are offering in your market. To help you get a sense of current home loan rates in Michigan, we surveyed and compared rate data from some of the state's largest banks.

Column graph comparing 30-year mortgage rates at major Michigan banks

Unlike most other states we looked at, Michigan is home to a diverse set of rates at its biggest mortgage lenders. While major brands like Chase and Chemical Bank tend to offer similar 30-year rates, there was a significant gap of 62.5 basis points between the lowest and highest recorded rates. Since these examples assume a fairly large down payment of 20% and a loan amount of $200,000, it's possible that you may see different numbers on your own quotes.

Get Multiple Mortgage Offers at Once
Get Multiple Mortgage Offers at Once
LendingTree can help you find and compare mortgage rates, all without affecting your credit.
LendingTree is our ultimate parent company
See Offers

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Location usually influences real estate prices more than it does your mortgage rate, but we tracked the average rate data for a few of Michigan's most popular areas to see if any places stood out in particular. We also plugged in the median home value of each place to calculate a rough monthly cost for each.

MSAAverage mortgage rateMedian home value
Detroit-Warren-Dearborn4.54%$160,316
Grand Rapids-Wyoming4.55%$170,007
Lansing-East Lansing4.58%$151,987
Flint4.48%$190,633
Ann Arbor4.46%$157,079

As the data show, there isn't much variation in terms of mortgage rate regardless of where you live in Michigan. Your loan type, credit history and debt profile have a much larger say in determining the rates lenders will offer you. A few percentage points of difference in a 30-year mortgage rate won't lead to drastic changes in monthly costs.

Housing prices are another story, with a margin of over 25% separating the lowest median values in the state (Lansing-East Lansing) from the highest median (Flint). Combining the average rate data with these median values illustrates how the price—and by extension the location—of your home has a far larger effect on your monthly principal and interest than local variations in rate.

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Get Multiple Mortgage Offers at Once
LendingTree can help you find and compare mortgage rates, all without affecting your credit.
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Get Multiple Mortgage Offers at Once
Get Multiple Mortgage Offers at Once
LendingTree can help you find and compare mortgage rates, all without affecting your credit.
LendingTree is our ultimate parent company
See Offers

on LendingTree's secure website. NMLS #1136: terms and conditions apply

Powered by
LendingTree is our ultimate parent company