The average mortgage rate in Michigan is currently 7.08% for a 30-year fixed loan term and 6.50% for a 15-year fixed loan term.
These are the interest rates offered to Michigan residents looking to buy or refinance a home as of 12/21/2023.
Mortgage rates plunged across the board this week, with the 30-year fixed rate dropping a quarter-point and dipping below 7% for the first time since August, according to the Mortgage Bankers Association. Just two months ago, the rate on a 30-year mortgage was 7.9%.
Mortgage interest rates are still forecasted to stay higher for longer into 2024, although the Federal Reserve projects rate cuts will begin sometime next year. Here are the current mortgage rates, as of Dec. 20:
- 30-year fixed: 6.83% with 0.6 points (previous week: 7.07% with 0.59 points).
- 15-year fixed: 6.41% with 0.77 points (previous week: 6.67% with 0.58 points).
- 5/1 ARM: 6.33% with 0.57 points (previous week: 6.47% with 0.76 points).
- 30-year jumbo loans: 7.12% with 0.55 points (previous week: 7.22% with 0.37 points).
- 30-year FHA loans: 6.65% with 0.69 points (previous week: 6.84% with 0.72 points).
Michigan homebuyers can get mortgage interest tax credits and help with down payments and closing costs from these programs.
- Available to: First-time homebuyers statewide and repeat homebuyers in targeted areas; homes have a sales price limit of $224,500.
- Income limits: Vary by county.
- First-time homebuyers only?: No.
- Loan options: 30-year fixed-rate mortgages.
- Down payment and closing cost assistance: You can use this loan program in conjunction with Michigan Down Payment for up to $7,500 statewide or up to $10,000 in certain ZIP codes.
- Available to: First-time and repeat homebuyers; homes have a sales price limit of $224,500.
- Income limits: Vary by county.
- First-time homebuyers only?: No.
- Loan options: 30-year fixed-rate mortgages.
- Down payment and closing cost assistance: You can use this program with Michigan Down Payment for up to $7,500.
- Available to: First-time homebuyers statewide and repeat homebuyers in targeted areas; homes have a sales price limit of $224,500.
- Income limits: Vary by county.
- First-time homebuyers only?: No.
- Benefit: Qualified homebuyers can credit 20% of their annual mortgage interest paid against their year-end tax liability, up to 30 years.
U.S. News selects the Best Loan Companies by evaluating affordability, borrower eligibility criteria and customer service. Those with the highest overall scores are considered the best lenders.
To calculate each score, we use data about the lender and its loan offerings, giving greater weight to factors that matter most to borrowers. For mortgage lenders, we take into account each company’s customer service ratings, interest rates, loan product availability, minimum down payment, minimum FICO score and online features.
The weight each scoring factor receives is based on a nationwide survey on what borrowers look for in a lender.
To receive a rating, lenders must offer qualifying loans nationwide and have a good reputation within the industry. Read more about our methodology.
To recap, here are the picks:
