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.

On January 20, 2025, President Donald Trump issued an executive order implementing a regulatory freeze across federal agencies, aiming to reduce housing costs by cutting regulations and expanding housing supply.

Implications for the Housing Market:

• Regulatory Uncertainty: The freeze introduces uncertainty regarding the future of housing policies and mortgage lending, as it halts progress on existing and proposed regulations.
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• Potential Cost Reductions: By targeting regulations that contribute to high housing costs, the administration seeks to make homeownership more attainable. However, the effectiveness of these measures will depend on their detailed implementation and the response from local authorities.
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• Impact on Affordable Housing Initiatives: The freeze may affect programs designed to promote affordable housing, such as the Affirmatively Furthering Fair Housing (AFFH) rule, which aims to eliminate housing discrimination and promote diverse communities. Changes to such regulations could influence the availability and development of affordable housing.

Considerations:

• Local vs. Federal Dynamics: While the federal government can set broad policies, local zoning laws and regulations play a significant role in housing development. Navigating these local concerns is crucial for the success of any federal initiative aimed at reducing housing costs.
  HousingWire
• Implementation Timeline: Experts caution that any price reductions from these regulatory changes may not be immediate, as the housing market is influenced by a complex interplay of factors, including supply chain issues, labor availability, and local policy environments.
  Investopedia

In summary, President Trump’s regulatory freeze is intended to lower housing costs by reducing federal regulations. However, its actual impact will depend on how these changes are implemented and how they interact with state and local policies. Stakeholders in the housing market should stay informed about these developments to understand their potential effects.