Michigan Housing Market Gains Momentum: Low Interest Rates Lead Push Towards Recovery
Detroit area home prices increased 15% from a year earlier, thanks in part to record low Michigan mortgage rates. Interest rates are fueling a robust recovery throughout all major metropolitan real estate markets in the United States, and the greater Detroit area is no exception.
With recent economic reports showing signs of recovery, Michigan mortgage rates are starting to trend upward. Keep in mind that every 1% increase in interest rates equals about 10% less in borrowing power – so, the payment for a $300,000 loan at 3.5% is the same (or lower) as the payment on a $270,000 loan at 4.5%. This fact, coupled with record low rates, is driving home affordability to all-time highs.
Although home prices have increased 15%, it’s important to note that Detroit area prices are still 36.6% off of their peak set in 2006. This seems to suggest that owning real estate is still a bargain, especially when compared to renting. It appears that the Detroit area real estate market may be on solid footing for the next several years, assuming mortgage rates do not dramatically increase.
United Home Loans is licensed to provide Michigan mortgage loans for the purchase or refinance of a primary, secondary or investment home. Maximum conventional mortgage limits range from $417,000 for a single family home and up to $801,950 for a four unit property.
United Home Loans provides Illinois mortgage loans in addition to mortgages in Indiana, Michigan, Minnesota and Wisconsin. Check out our rates below and call us with any mortgage related questions at (708) 531-8388. Michigan Mortgage Rates
MI 30 Year Fixed mortgage as of May 9, 2013 3.375%/3.394 APR
MI 15 Year Fixed mortgage as of May 9, 2013 2.625%/2.694 APR
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