Mortgage Rates Fall to Lowest Level in Nearly a Year

Good news for homebuyers — and for the Northern Michigan housing market.
Mortgage rates have dipped again, reaching their lowest average since October 2024.

According to Freddie Mac, the 30-year fixed mortgage rate fell to 6.17%, down from 6.27% two weeks ago and well below the 6.54% average from a year ago. The 15-year fixed also declined to 5.41%.

Experts say the recent calm reflects limited economic data and a steadier bond market — though future volatility is still possible.

Borrowers Are Taking Advantage

Lower rates have already boosted borrower activity. The Mortgage Bankers Association reports refinance applications are up 81% compared to this time last year, while home purchase applications have increased 20%.

“The lowest mortgage rates in a month spurred an increase in refinance activity,” said Joel Kan, the MBA’s deputy chief economist.

A Boost for Northern Michigan Real Estate

Locally, easing rates are welcome news for both buyers and sellers. More affordable borrowing can help offset higher home prices in areas like Leelanau, Traverse City, and the surrounding counties, where demand has remained strong despite limited inventory.

The National Association of Realtors also reported a 1.5% rise in existing home sales nationally — the highest in seven months — attributing the increase to falling mortgage rates.

If this trend continues, the combination of lower rates, growing inventory, and steady home values could bring new energy to the market heading into 2026.

Bottom Line

Whether you’re considering buying, selling, or refinancing, now may be an ideal time to explore your options. Even a small shift in rates can open the door to new opportunities — especially here in Northern Michigan, where lifestyle, location, and community remain the biggest draws.