Grand Rapids Housing Market: Mortgage Rates, Prices, and Trends Explained

Mortgage Rates: Totally Tubular or Grody to the Max? A Market Update with Perspective

If you’ve seen my latest market update video, you know I went full throwback with big hair, neon vibes, and even a photo of me as if I were selling real estate back in 1985. As fun as that was, there’s a serious point behind the retro style: when it comes to mortgage rates, perspective matters.

Today’s 30-year fixed mortgage rates are hovering around 6.5%. That number makes some buyers nervous, especially after the historically low 3% rates we saw just a few years ago. But if we pop a cassette into the boombox and rewind back to the 1980s, we’ll see that things could be far gnarlier.

Looking Back: The 80s vs. Today

In the early 80s, mortgage rates weren’t just high — they were sky high. In 1981, the average 30-year rate hit nearly 18%, which meant borrowing money for a home was a whole different ballgame. Imagine buying your first house with a rate that steep!

When we look at the big picture, the 50-year average for mortgage rates is about 7.9%. That means today’s 6.5% is actually below the long-term norm. Rates feel high only because the ultra-low numbers of 2020 and 2021 are still fresh in our memories.

So while 6.5% may not feel “totally radical,” it’s also not “grody to the max.” In fact, historically speaking, it’s pretty average.

The Grand Rapids Market Right Now

Of course, national rates only tell part of the story. Let’s zoom in on what’s happening right here in Grand Rapids.

• Average Sale Price: As of July 2025, the average home in Grand Rapids is selling for $392,083, up from $375,877 in July 2024. That’s a solid increase year over year, showing demand remains strong.

• Inventory: There are currently about 1,131 homes on the market, which is still considered limited supply for a metro our size. Low inventory continues to put pressure on prices.

• Days on Market: Homes are moving quickly, averaging just 25 days before going under contract. That’s a clear sign buyers are still active despite today’s rates.

• List-to-Sale Price: On average, homes are selling for 100.4% of list price — meaning many properties are still going for full asking or even slightly above.

Taken together, these stats show a resilient local market. Prices are rising, homes are moving fast, and competition remains strong.

What This Means for Buyers and Sellers

For buyers, today’s 6.5% mortgage rate can feel like a hurdle. But compared to the long sweep of history, it’s not outrageous. With Grand Rapids prices trending upward, waiting for rates to fall might mean paying more for the house itself later on.

For sellers, low inventory and quick sales times make this an attractive environment. The fact that homes are averaging more than 100% of list price shows that demand hasn’t cooled off as much as some feared.

The takeaway? Whether buying or selling, context is key. Rates alone don’t tell the whole story — it’s the combination of borrowing costs, home prices, inventory, and buyer demand that shapes your real opportunity.

A Little Perspective Goes a Long Way

It’s easy to get caught up in headlines or compare today’s rates to the once-in-a-lifetime lows of the pandemic. But when you rewind the tape and look at the 80s, or even at the 50-year average, you see that today’s market is more balanced than it feels in the moment.

And while I had a little fun imagining myself selling homes in 1985, one thing hasn’t changed: real estate is still about helping people make the best move for their lives.

Let’s Talk About Your Move

If you have questions about buying, selling, or just making sense of today’s Grand Rapids market, reach out anytime. I’m here to help you cut through the noise, keep things in perspective, and make confident decisions — whether rates are 6.5% or 16%.

After all, real estate isn’t just about houses — it’s about people, families, and futures. And that’s always worth more than any headline number.