When Will Home Interest Rates Go Down? Here’s What Buyers and Sellers in Southwest Michigan Should Know

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Aug 5
2 min read

What Experts Are Predicting

While rates reached multi-decade highs in 2023–2024, many economists expect gradual decreases in 2025, provided inflation continues to slow. However, large drops back to pandemic-era lows (like 2–3%) aren’t expected.

Instead, buyers may see rates in the 5–6% range in 2025 and beyond, compared to recent averages around 6–7%.

What This Means for Buyers in Southwest Michigan

Even if rates stay higher than we’d like, the market in Kalamazoo, Portage, Battle Creek, and Mattawan is adjusting:

More inventory means buyers have more options.
Price growth is slowing, creating opportunities for negotiation.
Buyers can always refinance later if rates fall.

Waiting for the “perfect” rate might mean missing out on the right home.

What This Means for Sellers

If you’re selling a home in Southwest Michigan, interest rates matter for you, too. Higher rates can reduce the pool of qualified buyers, but a gradual drop in 2025 may bring more buyers back into the market.

Here’s what that means:

Early 2025 sellers may face fewer buyers, but those buyers are serious and motivated.
Mid-to-late 2025 sellers may benefit from more demand as rates ease, leading to stronger offers.
Well-priced and well-presented homes are still selling quickly in Kalamazoo, Portage, Battle Creek, and Mattawan.

The good news? Even in a changing market, sellers who work with the right team can position their homes for success.

Smart Strategies for Today’s Market

At the Keefer Fischer Real Estate Team, led by Kerry Keefer Fischer, we help both buyers and sellers adapt to interest rate changes by:

Guiding buyers to loan programs with creative financing options
Helping sellers price competitively to attract the strongest pool of buyers
Timing the market strategically based on local data

Thinking of Buying or Selling in 2025?

Whether you’re house-hunting in Kalamazoo, moving up in Portage, or selling in Battle Creek or Mattawan, the Keefer Fischer Real Estate Team is here to help you navigate interest rates and market timing with confidence.

Contact us today to plan your next move in Southwest Michigan.