Point of Interest
With current mortgage rates in Minnesota being comparable to the nationwide average and housing prices continuing to rise, now is a perfect time to find a good deal on your next home.
Use our mortgage calculator to find the right mortgage for your income.
|Term||Rate||Rate Last Week|
|30-year fixed jumbo||4.03%||3.98%|
In recent years, the demand to purchase homes in the Minnesota housing market has increased while the supply has been more limited, making it a seller’s market. Houses are being listed and sold in relatively short times, which drives up competition and housing prices.
Compared to other states in the U.S., current mortgage rates Minnesota residents pay are pretty average and are only slightly higher. The current mortgage rate Minnesota homeowners pay for a 30-year fixed loan nationwide is 3.57%, whereas the 30-year fixed number for mortgage rates in Minnesota comes in at 3.72%. This, along with other factors mentioned below, makes Minnesota an excellent place to buy a property.
Getting a mortgage in Minnesota
A survey done by the National Association of Realtors shows that even with low supply and high demand, now is still a good time to buy and sell a home. Like the current mortgage rate in Minnesota, the median home price is also on par with other states. The median value of an owner-occupied property in the United States is $204,900.
Getting a mortgage in Minnesota is pretty straightforward. Knowing what your credit score is and having a good budget in place will go a long way to affording the home you want. We recommend using our mortgage calculator to estimate all of the costs involved. You also have lots of choices for mortgage lenders, so compare rates before finalizing a lender for your loan.
- Median home price: $211,800
- Average 30-year fixed rate: 3.72%
- Median monthly mortgage cost: $1,547
- Homeownership rate: 71.6%
Minnesota mortgage rate trends
Since 2016, the 30-year fixed mortgage rate in Minnesota has been relatively steady, hovering between 3% to 4% and reaching a peak interest rate of 4.88% in November 2018. Since then, mortgage and refinance rates Minnesota homeowners deal with have consistently fallen and are at some of the lowest it has been recently.
One aspect to keep in mind is that the Minnesota housing market tends to move a lot slower in the late winter months from January to March. This is due to the bleed-over from the holiday season and the cold, snowy weather. And this can affect interest rates.
However, this can be a great time to purchase a home if you are willing to do a bit more work. Once spring and warmer weather roll around, there will be more competition among buyers.
Minnesota current mortgage rates
While current mortgage rates have not reached historical lows in Minnesota, they are pretty close, with some of the lowest rates available since 2010. Today, you can expect to see Minnesota mortgage rates for a 30-year fixed loan to be around 3.72%.
While interest rates may be low compared to previous years, the reduced supply available will affect your overall bottom line. A few years ago, you may have had 10 to 15 housing options to consider when buying a home. Today, your choices have dwindled thanks to more competition and less supply to where you may only have four or five homes available that fit your criteria.
Most and least expensive places to live in Minnesota
There are 87 counties in Minnesota with housing data, and the cost of living varies widely. The main factors that separate the most and least expensive places to live in Minnesota are housing prices, job market, school districts, and overall cost of living for that area.
5 most expensive
- Carver County: The average cost of a home in Carver County is $301,900, with an average monthly cost of $1,987 for a mortgage.
- Washington County: In this county, the median home price is $277,400, with the average cost per month being $1,827.
- Scott County: This county has a median home price of $285,200, which is equal to about $1,900 per month.
- Hennepin County: This county has a median home price of $260,300.
- Dakota County: In this county, the median home price is $252,000, with the average cost per month being around $1,700.
5 least expensive
- Lac qui Parle County: This is the least expensive county in Minnesota thanks to the median home value being $85,600 with a decent job market.
- Big Stone County: In this county, the median home price is $97,900.
- Faribault County: With nearly double the population as the two previous counties, Faribault County’s median home price is $88,500.
- Pipestone County: Similar to Big Stone County, the median home price in Pipestone is $97,700.
- Norman County: In this county, the median home value is $93,400, with nearly 81% of residents being homeowners.
Minnesota mortgage resources and intricacies
Check out the Minnesota Homeownership Center if you are looking for resources to make your dreams of homeownership in Minnesota happen. It supports community-based organizations that connect with individuals and families who need homes and offers homebuyer workshops and free advice on its website.
Regarding mortgage assistance programs for homebuyers in Minnesota, look at the options offered by the Minnesota Housing Finance Agency. For starters, there is the First Time Homebuyer Program. This program allows first-time homebuyers to receive up to $10,000 in down payment and closing costs in the form of a second mortgage.
Minnesota also has a Deferred Payment Loan program. This is designed to help homeowners have a more affordable mortgage payment. Most borrowers will be eligible to borrow between $8,000 to $10,000 through this program if certain criteria are met. No payments are required, and no interest accrues during this time, but the loan must be repaid in full during the official sale of the property, or once it’s refinanced or paid off.
The final word
Your dream of owning a home in Minnesota is achievable if you are equipped with the knowledge, patience, and persistence that it takes. Mortgage rates in Minnesota (as well as refinance rates in Minnesota) are some of the lowest they have been in years, making it an excellent time to consider purchasing your next home.