Rates Jumped to 6.71% This Week. SE Michigan Still Has a $262K Price Gap Between Counties.

What Happened to Rates This Week

Mortgage rates jumped to 6.71% this week, the highest they've been in 13 months. The reason has nothing to do with the housing market directly. Conflict with Iran rattled the bond market, Treasury yields spiked, and mortgage rates followed. That's how this works. Geopolitical instability creates bond selloffs, and mortgage rates are tied to bond yields. When that happens fast, it catches buyers mid-search and occasionally kills deals that were already in progress.

If you're under contract right now, check your rate lock expiration date today. Not tomorrow. Today.

Where SE Michigan Prices Actually Stand

The county-level price spread in Southeast Michigan is significant and worth understanding before you start shopping. As of the latest Zillow data, Washtenaw County sits at $433,466 median for single-family homes. Oakland County is at $383,632. Livingston County comes in at $412,643. And Wayne County is at $171,354.

That's a $262,000 difference between the highest and lowest medians in the same metro region. These aren't interchangeable markets. A rate increase hits harder in Washtenaw than it does in Wayne County simply because the loan amounts are larger. A 6.71% rate on a $400,000 mortgage is a meaningfully different monthly payment than it was six weeks ago.

Why the National Industry Drama Doesn't Change Your Local Reality

There's a lot of noise nationally right now. Settlement talks, brokerage lawsuits, Zillow suing competitors, a major real estate data company filing for bankruptcy. None of that changes what you need to do in Ann Arbor or Ypsilanti or Saline this week.

What does matter: more renters are struggling with housing costs nationally, which eventually pushes people toward buying even when rates are elevated. That sustained demand is part of why inventory in Washtenaw County has stayed tight. Sellers haven't flooded the market, and buyers haven't fully walked away. The result is a market that's slower than 2021 but still competitive on well-priced homes.

What to Do With This Information

If you're a buyer, get a rate lock in writing before you make an offer. Rates moving 20-30 basis points in a week is not unusual right now, and your purchasing power changes with it. If you're a seller, a rate spike like this can soften showings within days as some buyers recalculate what they can afford. Price your home correctly from the start. This is not the market where you test high and drop later. Reach out if you want a straight read on what your home is worth or what you can realistically afford in this rate environment.