Mortgage Rates in Ann Arbor, Michigan: 2026 Guide
30-year fixed: 7.32%. Median: $365,000.
Current Mortgage Rates in Ann Arbor
| Loan Type | Rate | APR | Monthly* |
|---|---|---|---|
| 30-Year Fixed | 7.32% | 7.400% | $2,006/mo |
| 15-Year Fixed | 6.68% | 6.750% | $2,573/mo |
| 5/1 ARM | 6.46% | 6.810% | $1,838/mo |
Ann Arbor Market Insights
Ann Arbor is home to the University of Michigan, which drives the local economy and housing demand. The market is more expensive than the Michigan average, with desirable neighborhoods like Burns Park and Kerrytown commanding premium prices. The strong academic and tech presence keeps demand consistent.
FAQs
What is the average mortgage rate in Ann Arbor?+
How much down payment is needed in Ann Arbor?+
What are property taxes in Ann Arbor?+
What a $365,000 Home Costs in Ann Arbor
At Ann Arbor's median home price of $365,000, a 20% down payment is $73,000. On a 30-year fixed loan at 7.32%, the monthly principal and interest payment works out to $2,006, and property taxes add roughly $359 per month at an effective rate of 1.18%. That puts the total PITI payment near $2,365 a month before homeowners insurance and HOA fees.
Keeping housing at or below 28% of gross income means a buyer in Ann Arbor typically needs to earn about $101,357 a year to carry this payment comfortably.
Tax & Rate Context in Ann Arbor
The effective property tax rate in Ann Arbor is 1.18%, which works out to roughly $4,307 a year on a median-priced home.The 30-year fixed rate used here is the national Freddie Mac PMMS average of 7.32%. Local quotes move with credit score, down payment and lender, so compare at least three offers. Ann Arbor has an estimated population of 120K, and demand in the local market affects how quickly homes move and how often sellers negotiate on price.