Mortgage Rates in Detroit, Michigan: 2026 Guide
30-year fixed: 7.32%. Median: $185,000.
Current Mortgage Rates in Detroit
| Loan Type | Rate | APR | Monthly* |
|---|---|---|---|
| 30-Year Fixed | 7.32% | 7.400% | $1,017/mo |
| 15-Year Fixed | 6.68% | 6.750% | $1,304/mo |
| 5/1 ARM | 6.46% | 6.810% | $932/mo |
Detroit Market Insights
Detroit has been experiencing a renaissance, with significant investment in downtown, Midtown, and Corktown neighborhoods. The housing market offers some of the most affordable prices among major US cities, with opportunities for both owner-occupants and investors.
FAQs
What is the average mortgage rate in Detroit?+
How much down payment is needed in Detroit?+
What are property taxes in Detroit?+
What a $185,000 Home Costs in Detroit
At Detroit's median home price of $185,000, a 20% down payment is $37,000. On a 30-year fixed loan at 7.32%, the monthly principal and interest payment works out to $1,017, and property taxes add roughly $182 per month at an effective rate of 1.18%. That puts the total PITI payment near $1,199 a month before homeowners insurance and HOA fees.
Keeping housing at or below 28% of gross income means a buyer in Detroit typically needs to earn about $51,386 a year to carry this payment comfortably.
Tax & Rate Context in Detroit
The effective property tax rate in Detroit is 1.18%, which works out to roughly $2,183 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. Detroit has an estimated population of 670K, and demand in the local market affects how quickly homes move and how often sellers negotiate on price.