How interest rate changes are impacting homebuyers in 2025 Oakland and Macomb Counties Michigan

In 2025, homebuyers in Oakland and Macomb Counties, Michigan, are facing significant challenges due to rising interest rates. The average rate on a 30-year fixed mortgage has surpassed 7% for the first time since mid-2024, reaching 7.04% this week.

This increase has made home-buying less affordable, as higher rates lead to increased monthly mortgage payments.

In Macomb County, the housing market has experienced notable changes. The median home sold price in Macomb Township was $443,620 in December 2024, up 3.6% from the previous year.

Additionally, the county saw a decrease in housing inventory, with 2,565 homes for sale in December 2024, an 8.6% drop compared to November 2024.

This combination of rising prices and decreasing inventory, coupled with higher interest rates, has further strained affordability for prospective buyers.

Similarly, Oakland County has witnessed an increase in home prices. The median home sold price was $350,391 in December 2024, reflecting a 5.9% increase from the previous year.

This upward trend in prices, alongside elevated interest rates, has compounded the financial burden on homebuyers in the region.

Despite these challenges, some experts predict that mortgage rates may stabilize or slightly decline in the latter half of 2025, potentially settling in the 5% to 6% range.

However, current conditions necessitate that homebuyers in Oakland and Macomb Counties carefully assess their financial situations, explore available assistance programs, and consider various mortgage options to navigate the evolving market effectively.