Current Mortgage Interest Rates in Michigan — 2026

What Are Today’s Interest Rates in Michigan?

Below is a mortgage interest rates chart* for rate trends in Grand Rapids, Michigan. The rates below are for educational purposes only. Displayed figures indicate trends and are not rates offered by Treadstone Funding to any particular borrower, as interest rates are affected by factors including credit, loan amount, and more.

 

*Displayed interest rates represent industry trends, and do not represent rates offered by Treadstone Funding or Neighborhood Loans. For an accurate, up-to-date quote on mortgage rates, please talk to a licensed Loan Officer.

 

What is a Mortgage Interest Rate?

A mortgage interest rate is a percentage of your total loan balance. It’s paid on a monthly basis, along with your principal payment, until your loan is paid off. It’s a component in determining the annual cost to borrow money from a lender to purchase a home or other property. For example, If your interest rate is 5%, you will owe the lender 5% of your loan balance every year until the loan is paid off.

This rate is generally determined by several factors in the economy and investment activity, as well as individual qualifications. The core factor? Fannie Mae and Freddie Mac bundle mortgage loans, then sell them to investors. Whatever interest rate those investors are willing to pay for mortgage-backed securities determines what rates lenders can set on their loans.

 

How Mortgage Rates Are Determined

Mortgage rates can seem mysterious, but they are influenced by a blend of large-scale economic trends and your personal financial situation. Understanding these factors can help you navigate the home-buying process with more confidence. Here’s a breakdown of what shapes the interest rate you’re offered.

Economic (Macro) Factors: The Big Picture

These are the market forces that set the baseline for interest rates across the board. While you can’t control them, knowing what they are helps you understand why rates move up or down.

• Inflation: This is a primary driver. When inflation is high, the cost of goods and services rises. To compensate, lenders charge higher interest rates to ensure their lending remains profitable. When inflation cools, rates often follow suit.
• The Bond Market: Mortgage rates are closely tied to the performance of Mortgage-Backed Securities (MBS) and the 10-Year Treasury yield. When investors demand higher returns on these safer investments, mortgage rates typically increase to stay competitive and attract investment.
• The Federal Reserve: While the Fed doesn’t directly set mortgage rates, its policies have a significant impact. By adjusting the federal funds rate, the Fed influences the cost of borrowing for banks, which indirectly affects mortgage rates and the overall economy.

Borrower (Micro) Factors: Your Financial Profile

This is where you have the most control. Lenders like Treadstone assess your individual profile to determine the specific rate they can offer you.

• Credit Score: Your credit history is a major factor. A higher credit score demonstrates a track record of responsible borrowing, which typically qualifies you for lower interest rates.
• Down Payment (Loan-to-Value): The amount you put down matters. A larger down payment reduces the loan-to-value (LTV) ratio, which lowers the lender’s risk. This is often rewarded with a more favorable interest rate.
• Loan Type and Term: The structure of your loan plays a role. A 15-year loan usually has a lower rate than a 30-year loan because the lender gets its money back faster. Different loan programs, such as Conventional, FHA, or VA, also have different rate structures.
• Property Use: How you plan to use the property affects your rate. Primary residences generally receive the best rates, while investment properties and second homes are seen as higher risk and may come with higher interest rates.

 

How to Lock Your Interest Rate for a Home Purchase

A mortgage rate lock is an agreement to hold your interest rate for a set period of time (for example, 30, 45, or 60 days) while your loan is being finalized, as long as the loan closes within the lock period and lock terms are met.

This means even if market rates go up before you close, your rate—and monthly payment—stay the same.

How to Lock Your Mortgage Rate: Step by Step Guide

1. Talk to Your Loan Officer
   Before you start shopping for homes, reach out to Treadstone and discuss current rates. You’ll get pre-approved to start shopping for homes!
2. Find a House and Sign a Purchase Agreement
   Once your offer is accepted, you’ll have a contract with the seller.
3. Get Confirmation
   Your lender will confirm your interest rate is locked and give you a Loan Estimate. This document will show the locked rate, when it expires, and all the important loan details.
4. Close Within the Lock Period
   Try to finish all your paperwork—appraisals, inspections, and loan documents—before the lock expires (typically 30, 45, or 60 days).

What is the Difference Between Rate and APR?

When shopping for a home, you may see two separate figures expressed as a percentage: the mortgage interest rate and the APR.

APR stands for “annual percentage rate”. An annual percentage rate (APR) is a broader measure of the cost of borrowing money than the interest rate. The APR reflects the interest rate, any points, mortgage broker fees, and other charges that you pay to get the loan. For that reason, your APR is usually higher than your interest rate.

 

 

How Does the Interest Rate Affect a Home Loan in Michigan?

The higher the interest rate, the higher your monthly payment may be.

On a 30-year fixed-rate mortgage in Michigan with a loan amount of $160,000, a 0.1% change in rate affects your monthly payment by about $10-20, according to Money Under 30.

Remember, time your life— not the market. Waiting to buy for a lower interest rate could cost you more, especially since interest rates are trending upward. Interest rate should not be the deciding factor on your Michigan home purchase. Talk to a Loan Officer to make a game plan for your home purchase, no matter your interest rate!

 

 

How Do I Get a Lower Interest Rate?

Even though mortgage interest rates are determined by market trends, there are several things you can do to lower your interest rate.

• Shorten your loan term
• Place a larger down payment
• Improve your credit health
• Purchase discount points on your loan

Strengthen Your Credit Score

Your credit score is a key factor impacting the rate you receive. In some cases, higher FICO score can also help you qualify for better rates and terms.

• Pay Bills on Time, Every Time: Your payment history is crucial. Late payments can have a lasting impact, so setting up automatic payments is a smart move.
• Keep Credit Card Balances Low: Using a smaller percentage of your available credit can improve your score over time.
• Review Your Credit Report: Everyone’s entitled to a free credit report from each bureau annually. Scan for errors and dispute anything that looks off.

Questions? We’re here for you. Shoot us a message with your questions!

 

Current Average Home Values Across Michigan

Real estate is intensely local. The trends we see in downtown Grand Rapids can be completely different from what’s happening in Muskegon, Holland, or Lansing.

Factors influencing these values include:

• Inventory Levels: How many homes are for sale in a specific zip code? Low supply almost always pushes values up.
• Seasonality: Michigan markets often heat up in the spring and cool down as the snow falls.
• Local Development: New schools, parks, or businesses moving into a neighborhood can drive values up quickly.

Current Market Trends

Are home prices in Michigan climbing, stabilizing, or correcting? We keep a close eye on the data so you don’t have to guess. Use the tool below to explore how home values are trending in your area of interest.

Need help interpreting the numbers?

Data is great, but context is better. If you’re wondering how these trends impact your specific pre-approval or monthly payment, reach out to us. We’ll help you crunch the numbers so you can move forward with confidence.

 

FAQs about Interest Rates

What are your current interest rates?
Just like gas prices, interest rates fluctuate daily and is based on your specific scenario. Please contact one of our Licensed Loan Officers to get a quote.

How does credit affect our interest rates?
Many factors come into play when determining your interest rate, with your credit score being only one part of this equation. In general, a higher credit score results in a lower interest rate.

What is the difference between my Interest Rate and APR?
An interest rate is a percentage of the principal balance on your loan charged on an annual basis. Interest is paid monthly and amortized over the term of the loan. APR (annual percentage rate) factors in all the costs and fees of the loan and expresses them as a percentage. It is to be expected that the APR is higher than the interest rate.

What programs are there for first-time home buyers?
Conventional mortgage loan investors Fannie Mae and Freddie Mac offer first-time home buyer loan programs, known as Homeready and HomePossible, respectively. There are income limits and credit requirements that must be met to qualify. These programs offer more favorable interest rates, lower private mortgage insurance, and flexibility on the amount you can put down.

 

Are you ready to jump into the mortgage process?

*Mortgage interest rates, figures, and examples are for educational purposes only. No commitment to lend implied. Talk with a Loan Officer to determine your eligibility.