Mortgage rates in Michigan
Average 30-year fixed 6.49% · Updated July 9, 2026 · Freddie Mac (FRED)
Michigan pairs low home prices with above-average property-tax rates. Below is what buying at Michigan's median price looks like at today's national average rate, plus the local property tax and assistance that actually change your payment.
What a mortgage costs in Michigan
The interest rate on a Michigan mortgage is the same 6.49% national average a lender would quote anywhere — rates are set by the bond market, not by your state. On Michigan's median $310,575 home with 20% down, the loan works out to $248,460, or about $1,569 a month in principal and interest.
What makes Michigan different is the cost around the loan. Its 1.35% effective property-tax rate adds roughly $349 a month, and homeowners insurance about $116 more — bringing the all-in estimate to $2,035. Those local costs, not the interest rate, are what set Michigan apart. Your own price and down payment will move the number — work backward from your income with the affordability estimator.
Getting approved in Michigan
Federal HMDA lending records show Michigan lenders originated 229,505 home loans in 2025 and denied 70,986 applications — an approval rate near 76.4% among decisioned applications, against 76.6% nationwide. See how all 50 states compare in our mortgage approval report, and how Michigan ranks for lender complaints (11,489 on record).
Shopping for a loan? See the most active mortgage lenders in Michigan, ranked by federal HMDA volume.
Down-payment help in Michigan
You rarely need 20% down. MSHDA — Michigan's housing finance agency — runs the state's main assistance program: The MI 10K DPA loan provides up to $10,000 toward the down payment statewide. Eligibility usually turns on income limits and a homebuyer-education course. Check current terms at MSHDA, see how a smaller down payment changes your number with the down-payment estimator, or compare assistance in every state.
Michigan mortgage FAQ
What is the current mortgage rate in Michigan?
As of July 9, 2026, the U.S. average 30-year fixed rate is 6.49%. The note rate itself is set nationally, not by state — a lender prices your Michigan loan the same way it would anywhere, based on your credit, down payment and loan type.
What changes locally is everything around the rate: Michigan's ~1.35% effective property tax, insurance costs, and which assistance programs apply.
What is the monthly payment on a typical Michigan home?
On Michigan's median home price of about $310,575 with 20% down at today's 6.49% average 30-year rate, expect roughly $2,035/month — that's $1,569 principal and interest plus about $349 property tax and $116 insurance. Adjust the numbers for your exact price and down payment in our calculators.
How hard is it to get approved for a mortgage in Michigan?
In 2025, Michigan lenders originated 229,505 home loans and denied 70,986 applications — an approval rate of about 76.4% among decisioned applications, versus 76.6% nationally, according to federal HMDA data. See how every state ranks in our mortgage approval report.
Rates shown are national weekly averages for general guidance, not an offer or personalized quote. Payment estimates assume the down payment noted plus estimated taxes and insurance. Confirm current pricing with a licensed lender.