Mortgage Rates Hit 7.28%: What Farmington Hills Buyers Need to Know

Mortgage rates rose sharply this week. Freddie Mac reported Thursday that the average 30-year fixed rate climbed to 7.28%, up from 7.03% the week before. It's the highest level since November 2023 and the sixth weekly increase in a row.

For buyers in Farmington Hills and across Oakland County, that's a noticeable change. On a $400,000 loan, the monthly principal and interest payment is about $2,737 at today's rate, compared with about $2,393 at this year's low of 5.98%. That's roughly $344 more each month.

But the rate headline isn't the whole picture for local buyers.

More homes to choose from. Active listings in the Detroit metro were up about 13% in September compared with a year ago, according to Realtor.com.

More room to negotiate. Realtor.com also found that 21.5% of metro Detroit listings had a price reduction in September, above the national rate.

Values holding steady. Oakland County's median sale price was about $397,000 over the three months ending in July, up 3.8% from a year earlier, according to Redfin.

Ways buyers can lower their payment

Seller-paid rate buydowns. With more sellers open to concessions, some buyers are negotiating for the seller to pay down their interest rate. A 2-1 buydown lowers the rate by two points in the first year and one point in the second.

Adjustable-rate and government-backed loans. ARMs and VA loans averaged below 30-year fixed rates this week, and FHA loans allow as little as 3.5% down.

Michigan's Rate Relief Mortgage. The Michigan State Housing Development Authority offers a program that lowers the rate by one percentage point for eligible first-time buyers with income at or below 80% of area median income. Funding is first-come, first-served, so buyers should ask a MSHDA-approved lender whether it's still available.

Comparing lenders. Rates are changing daily, so getting written loan estimates from more than one lender on the same day can make a real difference.

Rates may rise or fall from here, and no one can predict which. Buyers who are ready to move can still find opportunities this fall by running the numbers carefully and asking about these options.

A full breakdown with a payment table and more detail is available here: homes2moveyou.com/mortgage-rates-7-percent-oakland-county-buyers/

Tom Gilliam is a REALTOR with RE/MAX Classic in Farmington Hills and has worked in Oakland County real estate for 24 years.