Interest Rates Are Dropping—Is Now the Right Time to Buy or Refinance in Michigan?
Erik Gascho • August 7, 2025
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After months (or let’s be honest—years) of higher mortgage rates, there’s finally some good news for those waiting on the sidelines: Interest rates are starting to come down, and the Federal Reserve is widely expected to cut rates in September.
Whether you're a first-time homebuyer in Clarkston, looking to refinance your existing mortgage in Michigan, or just trying to make sense of what’s going on with rates, this update is for you.
📉 What’s Happening With Interest Rates Right Now?
Over the last few months, inflation has shown signs of cooling, and the job market is gradually softening—exactly the combination the Federal Reserve wants to see before lowering rates.
As a result:
Mortgage rates have been trending downward, with 30-year fixed rates dropping closer to the mid-6% range.
Many experts (and futures markets) predict the Fed will make its first rate cut in September 2025, with potentially more to follow if inflation continues to behave.
For context, just a year ago, many buyers in Southeast Michigan were looking at 7%+ interest rates. So, even a drop of half a percent or more can make a major difference in monthly payments and long-term savings.
🏡 What This Means for Michigan Homebuyers
If you’ve been holding off on buying a home in Clarkston, Lake Orion, or Rochester Hills because of rates—this might be your window.
Here’s why:
Lower monthly payments: A 0.5% drop in interest rate on a $300,000 mortgage could save you roughly $100–$150/month.
More purchasing power: Lower rates increase how much home you can afford without stretching your budget.
Less competition (for now): Many buyers are still waiting. Getting pre-approved before the rush can help you secure a better deal.
💡 Pro Tip: Consider getting rate-locked before rates fall further—some lenders offer a float-down option if rates drop again before closing.
🔄 What About Homeowners Looking to Refinance?
If you purchased or refinanced during the 2022–2024 rate spikes, you may now have an opportunity to restructure your mortgage for better cash flow.
Refinancing might make sense if:
Your current rate is over 7%
You want to consolidate high-interest debt
You’re looking to access home equity for renovations, tuition, or investing
You’re planning to stay in your home for at least 3 more years
Even if you're unsure if now is the right time, it’s worth exploring what a refi could look like based on your long-term goals and financial plan.
📊 Should I Wait for Rates to Drop Even More?
That’s the big question everyone’s asking. Here’s my honest take:
Yes, rates may continue to fall in 2025 if inflation stays low.
But, as rates drop, more buyers will flood the market, driving up home prices and competition.
Timing the market perfectly is nearly impossible. Instead of waiting for “perfect” conditions, think about your personal situation:
Do you have stable income and job security?
Are you tired of renting or outgrowing your current home?
Would locking in today’s rate give you more peace of mind?
If the answer is yes, this market could offer a smart opportunity—especially with expert guidance and a custom plan.
🤝 Local Expertise You Can Trust
As a Clarkston-based mortgage advisor and lifelong Michigander, I work with families and financial professionals across Oakland County and beyond. Whether you're in Clarkston, Oxford, Waterford, or Bloomfield Hills, I can help you:
Understand your numbers
Get pre-approved with confidence
Lock in a rate strategy that protects you long-term
Decide whether buying, refinancing, or waiting makes the most sense for you
✅ Ready to Explore Your Options?
📅 Schedule a free mortgage strategy session with me:
👉 erikgascho.youcanbook.me
You’ll walk away with clarity, a plan, and zero pressure.
Let’s make the most of this rate shift—together.
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Fed Governor Waller hints at interest rate cuts soon—but what does that mean for mortgage rates in Clarkston, Michigan? Learn what it means for homebuyers and homeowners now.
On July 17, 2025, Federal Reserve Governor Christopher Waller called for an immediate interest rate cut, citing slowing economic momentum and progress on inflation. If you're a homebuyer or homeowner, this could mean lower mortgage rates, better refinance opportunities, and improved affordability in the coming months. 📣 What Did Waller Say? During a speech in New York hosted by the Money Marketeers of NYU, Fed Governor Christopher Waller made headlines by urging a 0.25% rate cut at the upcoming July 29–30 Fed meeting. Here’s what he emphasized: The U.S. economy is losing steam. GDP growth has slowed from late 2024 highs and consumer spending is weakening. Inflation is near the Fed’s 2% goal. Waller noted that core inflation has been tame and short-term price hikes from new tariffs should be temporary. Act now before job growth deteriorates. He warned that waiting too long could allow economic conditions to worsen unnecessarily. This isn't political. While speculation swirls about Waller potentially replacing Jerome Powell as Fed Chair, Waller made clear: “This recommendation is based on data, not politics.” 🔍 Big Picture: Why the Fed’s Split Matters Waller’s stance is not shared by the majority of the Fed’s decision-makers. Most FOMC members favor holding off until September or later, citing concerns about: Lingering inflation risks The impact of tariffs from President Trump’s trade policies Uncertainty about how resilient the labor market really is However, Waller and Fed Governor Michelle Bowman are pushing for faster action—especially given signs of softening in housing, consumer demand, and hiring trends. 🏠 How This Affects You: Homebuyers & Homeowners 1. Mortgage Rates Could Drop Sooner Than Expected A rate cut by the Fed could lower the cost of borrowing, particularly for: Adjustable-rate mortgages (ARMs) Home equity lines of credit (HELOCs) Refinance options for homeowners While fixed mortgage rates aren’t directly tied to Fed policy, they often respond to market expectations, which are now pricing in a cut. 2. Affordability Could Improve for Buyers If rates fall and home price appreciation slows alongside the broader economy, buyers may gain more leverage—especially first-time buyers who’ve been priced out. 3. Time to Revisit Refinance Opportunities If you purchased or refinanced during the high-rate cycle of 2023–2024, now may be a good time to start tracking mortgage rates again. A quarter-point drop could translate into meaningful savings, especially over 30 years. 4. Home Equity May Stabilize Waller downplayed tariff inflation as short-term “noise.” That’s good news for long-term homeowners: if inflation remains anchored, it could support stable home values and equity growth without forcing aggressive rate hikes. 🧭 Final Thoughts Waller’s speech was a strong signal that rate relief could be coming sooner than expected. For buyers on the fence and homeowners with high-interest mortgages, this may be the opportunity to act. Want to know what this means for your unique situation? Let’s connect for a free annual financial review to help you understand your options—whether that’s locking in a better rate, evaluating refinance opportunities, or preparing for your next home purchase. 📅 Book a quick call with me here 📱 Or just text me: 248‑214‑8526
