Mortgage Rates in Ann Arbor, Michigan — March 2026
Updated March 2026 | Based on Ann Arbor market data and regional lending conditions
Ann Arbor is a growing city in Michigan with a population of 123,851. The current 30-year fixed mortgage rate in Ann Arbor is 6.72%, which is 0.07% above the national average. With a median home price of $415,000 and a 20% down payment of $83,000, homebuyers can expect a monthly principal and interest payment of approximately $2,147.
Current Mortgage Rates in Ann Arbor, MI
Below are the current average mortgage rates available in the Ann Arbor area as of March 2026. Rates vary by lender, credit score, and loan-to-value ratio. Use our free calculator above to see your personalized estimate.
| Loan Type | Rate | National Avg | Difference |
|---|---|---|---|
| 30-Year Fixed | 6.72% | 6.65% | +0.07% |
| 15-Year Fixed | 5.96% | 5.89% | +0.07% |
| 5/1 ARM | 6.22% | 6.15% | +0.07% |
| FHA | 6.32% | 6.25% | +0.07% |
| VA | 6.12% | 6.05% | +0.07% |
| Jumbo | 6.92% | 6.85% | +0.07% |
Ann Arbor Housing Market Overview
The Ann Arbor housing market reflects moderate demand with prices near the national average. The median household income in Ann Arbor is $65,250, and the cost of living index is 107.5 (national average = 100). Based on the 28% affordability rule, you would need an income of approximately $112,457 to comfortably afford the median-priced home in Ann Arbor, which exceeds the current median household income.
Monthly Payment Breakdown for Ann Arbor
Based on the median home price of $415,000 with 20% down ($83,000), here is what you can expect to pay monthly in Ann Arbor:
15-Year vs. 30-Year Mortgage in Ann Arbor
Choosing a 15-year mortgage in Ann Arbor at 5.96% instead of a 30-year at 6.72% would save you $270,000 in total interest over the life of the loan. However, your monthly payment would be $2,794 instead of $2,147 — an increase of $647 per month.
Calculate Your Ann Arbor Mortgage Payment
Use our free calculator to get a personalized estimate based on your loan amount, interest rate, and term.
Open Free CalculatorFrequently Asked Questions About Mortgages in Ann Arbor
What are the current mortgage rates in Ann Arbor, MI?
As of March 2026, the average 30-year fixed mortgage rate in Ann Arbor, Michigan is 6.72%, while the 15-year fixed rate is 5.96%. FHA loans average 6.32% and VA loans 6.12%. These rates are 0.07% above the national average of 6.65%.
How much is a monthly mortgage payment in Ann Arbor?
Based on the median home price of $415,000 with 20% down, the estimated monthly mortgage payment in Ann Arbor is $2,147 for principal and interest. Including property taxes of $477/month, the total monthly housing cost is approximately $2,624.
What income do I need to buy a home in Ann Arbor?
Using the 28% rule, you would need an annual income of approximately $112,457 to afford the median-priced home in Ann Arbor at $415,000. The median household income in Ann Arbor is $65,250. This means most households would need to either earn above the median or consider homes below $415,000.
Is Ann Arbor a good place to buy a home in 2026?
Ann Arbor has a moderate cost of living with a cost of living index of 107.5 (national average = 100). The property tax rate in Michigan is 1.38%, which is near the national average. Ann Arbor has a population of 123,851 and offers a balanced lifestyle.
Mortgage Rates in Other Michigan Cities
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Last updated: March 2026. Rates are approximate averages based on regional lending data for the Ann Arbor, Michigan area. Individual rates may vary by lender, credit score, loan amount, and other factors. Use our free calculator for a personalized estimate.