Published October 6, 2025
How Interest Rates Are Affecting Canton Buyers Right Now
The real estate market in Canton, MI, is still bustling, but today’s buyers are facing a new set of challenges—rising interest rates. After years of historically low mortgage rates, the recent increases have changed what buyers can afford, and how they should approach their home search.
What’s Changed in 2025?
Mortgage rates in mid-2025 are hovering around 6.5%–7% for a 30-year fixed loan, up from the record lows of 2.5–3% just a couple of years ago. This means monthly payments on the same-priced home are significantly higher than they were in 2021–22.
Example:
- A $400,000 home with 20% down at 3%: ~$1,350/mo (principal & interest)
- Same home at 7%: ~$2,130/mo
That’s a $780/month increase for the same house!
How Does This Impact You as a Buyer?
- Buying Power Drops: Higher rates mean many buyers have to lower their price range, or increase their down payment to keep payments manageable.
- Competition is Still High: Inventory is low, so even with higher rates, Canton homes are still moving quickly.
- Loan Types Matter: Adjustable-rate and buydown options are back in the conversation.
Tips for Navigating the Market
- Get Pre-Approved Early: Know exactly what you can afford at today’s rates.
- Consider Rate Buydowns: Some sellers (or builders) are offering incentives to help buy down your interest rate.
- Be Ready to Move Fast: Well-priced homes in Canton still sell quickly, especially in popular neighborhoods.
- Work With a Local Expert: A seasoned agent (like The Jason Matt Team!) can help you strategize and negotiate the best deal.
Sources:
Ready to buy or just want to understand your options?
Contact The Jason Matt Team today for a free consultation—we’ll help you make sense of Canton’s changing market and get you moving!
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