Rates Cross 7% Again: What the Iran-Driven Bond Sell-Off Means for SE Michigan Buyers Right Now

Rates Are Back Above 7% and It Happened Fast

Mortgage rates hit 6.71% last week according to Inman, and by the time HousingWire ran their numbers, spreads had pushed past 7% as oil crossed $100 a barrel and the Iran conflict rattled Treasury markets. That is not a slow drift upward. That is a sharp move driven by geopolitical pressure on bond yields, and it landed on buyers who were already stretched. If you locked in anything under 6.5% in the last year, you made a good call. If you are sitting on the sideline waiting for rates to drop before you buy, this week is a reminder that the market does not wait for you to feel ready.

What This Does to the SE Michigan Picture

Nationally, existing home sales slipped to 3.98 million units in August, and months of supply climbed to 4.9, the highest in over a decade. More inventory sitting on the market is generally good news for buyers, but higher rates cut directly into purchasing power and can offset any advantage that extra supply creates. Here in Southeast Michigan, the numbers stay county-specific. Washtenaw County is sitting at a median of $440,089. Oakland is at $389,159. Livingston is at $416,450. Wayne County comes in significantly lower at $172,108. At 7% on a 30-year loan, the monthly payment difference between a Wayne County purchase and a Washtenaw County purchase is substantial. That math matters more now than it did six months ago.

Private Listings Are Quietly Changing How Buyers Search

There is a shift happening on the listing side that does not get enough attention. The industry conversation around private listings is heating up, partly driven by Compass's settlement and ongoing debate about buyer access. The core issue is straightforward: if a seller keeps their home off the public MLS, some buyers will never see it. That is a real tradeoff, and it cuts both ways. Sellers who go private may limit their pool. Buyers who are not working closely with a connected local agent may miss inventory entirely. In a market where supply is still tight in the most in-demand price ranges, that gap matters.

What to Do With This Right Now

If you are buying in Washtenaw, Oakland, or Livingston County, get pre-approved now so you know exactly what a 7% rate does to your budget before you fall in love with a house. If you are selling, do not assume rising inventory means your home will sit. Homes priced correctly in strong local markets are still moving. The buyers who are active right now are serious. Work with that, not against it.