Minnesota Mortgage Rates for September 2019

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The average rate of a 30-year mortgage in Minnesota is 3.91%. 15-year mortgage rates average at 3.43%, while 5/1 adjustable-rate mortgages (ARMs) in Minnesota carry an average initial rate of 3.64%.

Loan typeAverage rateWeekly change3-month change
30-year fixed3.91%–0.02%–0.31%
15-year fixed3.43%+0.00%–0.31%
5/1 ARM3.64%+0.00%–0.18%
Rates for a $200,000 loan with 20% down payment

Because interest rates and APRs are the equivalent of a price tag for a mortgage, it's important to understand whether the numbers you see are really affordable. But with mortgage rates changing so frequently, homebuyers often find it hard to know which deal to take. Our weekly tracking of lender estimates in Minnesota help you gauge the right time and place for closing on a home loan.

Best Mortgage Rates in Minnesota

This week's lowest 30-year mortgage rate estimate in Minnesota is 3.15%. The lowest estimate for a 15-year mortgage is 2.75%, while the best initial rate for a 5/1 ARM comes in at 2.63%. These figures are estimates based on an imagined home purchase of $200,000 and a 20% down payment.

Whether you're buying a house in Minnesota or elsewhere, the mortgage rates that you see are driven by a combination of variables ranging from your personal finances to local market conditions. Depending on when and where you look, your quotes for a home loan will vary from lender to lender. In this environment, the best way to ensure a good deal is to seek out multiple options.

That said, it also helps to know the historical behavior of mortgage rates and where they may go next. Predicting rates is never an exact science, but decades of observation have created enough data to make some educated guesses about how rates respond to certain economic factors. We took a look at a few of these indicators and what they might mean for mortgage borrowers in Minnesota.

Current Mortgage Rate Forecast for Minnesota

Since the start of 2019, mortgage rates in the U.S. have defied last year's expectations by trending downwards. Most experts attribute this to the Federal Open Market Committee (FOMC), which changed its prediction of rate trends for the next year. The committee switched from planning several rate hikes to a "wait and see" attitude for the time being.

Line graph of average U.S. 30-year mortgage rates vs. effective federal funds rate since 2014

The FOMC's last rate hike occurred in December 2018, when the target federal funds rate range went from 2.25% to 2.50%. As the above chart shows, mortgage rates don't necessarily move in perfect unison with the federal funds rate. However, the FOMC's actions and statements do have a definite effect on how banks and other mortgage lenders plan for the future.

For homebuyers in Minnesota, the current season of slightly falling rates presents a good opportunity—so long as other financial conditions are met. Getting a mortgage involves upfront costs as well as long-term payments, and it makes little sense to lock in a great rate if your budget isn't prepared for the expense of a down payment, loan closing costs, and insurance premiums.

Rates at Minnesota's Most Popular Mortgage Lenders

While it's easier than ever to find mortgage offers online, many homebuyers prefer to start with brick-and-mortar shopping. Local banks still provide a big share of the home loans in most areas, and the rates they set impact the rest of the market. We gathered estimates from five of Minnesota's largest banks to see how their rates compared.

Column graph comparing 30-year mortgage rates at major Minnesota banks

At the time of our analysis, there was very little variation in mortgage rates at Minnesota's major banks. While every borrower gets a unique rate quoted to them based on their own financial profile and loan details, most mortgage lenders share a very similar underwriting model. Similarities aside, these estimates don't reflect the variations in how each lender handles the question of closing costs and discount points, which affect your out-of-pocket expenses.

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Comparing Home Loan Rates by City

Minnesota is a fairly large state, which makes it reasonable to expect that the market for real estate and home financing might change a little depending on where you go. While we found that to be true where property values were concerned, the average mortgage rate in each metro area wasn't terribly different from the state's overall average.

AreaAverage mortgage rateMedian home value
Minneapolis-St. Paul-Bloomington4.51%$272,586
Duluth4.53%$167,496
Rochester4.35%$207,122
St. Cloud4.56%$189,681
Average rate is for a 30-year mortgage with a 20% down payment.

According to the estimates we've seen for Minnesota, the rate you get for a mortgage in Minneapolis won't be too far off the rate you get in Duluth, St. Cloud, or any other part of the state. However, the price tag of a typical home in each of these metro areas leans much more heavily on local conditions. It's important to remember that your monthly mortgage payment will be a product of both your rate and your loan amount.

All this means that Minnesotans don't have to worry about mortgage rates changing based on where they decide to settle. But as we've explained, these numbers definitely will change over time and in response to your financial profile. Making sure that you have the savings and credit history to justify your desired loan amount ensures you'll see a reasonable interest rate on the financing you need to buy a home.

Evaluating Your Mortgage Options: An Example in Rochester

If you're determined to find ways to lower your mortgage rate on short notice, your options are a little limited. Credit takes time to build, as do savings. In most cases, the best way to lower your mortgage rate immediately is by choosing a different lender or loan type. The kind of mortgage you take is especially impactful when it comes to rates.

Consider someone buying a $200,000 home in Rochester, Minnesota with a down payment of 20%. An average 30-year mortgage rate for such a purchase would be 4.35%, leading to minimum monthly payments of $797 and a lifetime interest total of $126,740. While most buyers accept the 30-year loan as standard, other loan types offer lower rates in specific situations.

For instance, a homebuyer expecting to sell and move on in just a few years might benefit from an ARM loan. In Minnesota, a typical 5/1 ARM comes with an initial fixed rate of 3.64% during the first five years of its term. Although this rate will start to move after that period, an early sale can protect borrowers from the potential for rising ARM rates. At the initial rate, our example would cost at least $732 every month.

Many buyers in Minnesota aim for long-term ownership. For them, a 15-year mortgage offers lower average rates as well as far less costly interest. Currently, the average 15-year mortgage rate in Minnesota results in a minimum monthly payment of $1,139 in the example. 15-year payments are higher because there are just half as many as in a 30-year loan, but this works to your advantage in the long run. Lifetime interest on the 15-year loan totals just $44,898.

The average rate of a 30-year mortgage in Minnesota is 3.91%. 15-year mortgage rates average at 3.43%, while 5/1 adjustable-rate mortgages (ARMs) in Minnesota carry an average initial rate of 3.64%.

Loan typeAverage rateWeekly change3-month change
30-year fixed3.91%–0.02%–0.31%
15-year fixed3.43%+0.00%–0.31%
5/1 ARM3.64%+0.00%–0.18%
Rates for a $200,000 loan with 20% down payment

Because interest rates and APRs are the equivalent of a price tag for a mortgage, it's important to understand whether the numbers you see are really affordable. But with mortgage rates changing so frequently, homebuyers often find it hard to know which deal to take. Our weekly tracking of lender estimates in Minnesota help you gauge the right time and place for closing on a home loan.

This week's lowest 30-year mortgage rate estimate in Minnesota is 3.15%. The lowest estimate for a 15-year mortgage is 2.75%, while the best initial rate for a 5/1 ARM comes in at 2.63%. These figures are estimates based on an imagined home purchase of $200,000 and a 20% down payment.

Whether you're buying a house in Minnesota or elsewhere, the mortgage rates that you see are driven by a combination of variables ranging from your personal finances to local market conditions. Depending on when and where you look, your quotes for a home loan will vary from lender to lender. In this environment, the best way to ensure a good deal is to seek out multiple options.

That said, it also helps to know the historical behavior of mortgage rates and where they may go next. Predicting rates is never an exact science, but decades of observation have created enough data to make some educated guesses about how rates respond to certain economic factors. We took a look at a few of these indicators and what they might mean for mortgage borrowers in Minnesota.

Since the start of 2019, mortgage rates in the U.S. have defied last year's expectations by trending downwards. Most experts attribute this to the Federal Open Market Committee (FOMC), which changed its prediction of rate trends for the next year. The committee switched from planning several rate hikes to a "wait and see" attitude for the time being.

Line graph of average U.S. 30-year mortgage rates vs. effective federal funds rate since 2014

The FOMC's last rate hike occurred in December 2018, when the target federal funds rate range went from 2.25% to 2.50%. As the above chart shows, mortgage rates don't necessarily move in perfect unison with the federal funds rate. However, the FOMC's actions and statements do have a definite effect on how banks and other mortgage lenders plan for the future.

For homebuyers in Minnesota, the current season of slightly falling rates presents a good opportunity—so long as other financial conditions are met. Getting a mortgage involves upfront costs as well as long-term payments, and it makes little sense to lock in a great rate if your budget isn't prepared for the expense of a down payment, loan closing costs, and insurance premiums.

While it's easier than ever to find mortgage offers online, many homebuyers prefer to start with brick-and-mortar shopping. Local banks still provide a big share of the home loans in most areas, and the rates they set impact the rest of the market. We gathered estimates from five of Minnesota's largest banks to see how their rates compared.

Column graph comparing 30-year mortgage rates at major Minnesota banks

At the time of our analysis, there was very little variation in mortgage rates at Minnesota's major banks. While every borrower gets a unique rate quoted to them based on their own financial profile and loan details, most mortgage lenders share a very similar underwriting model. Similarities aside, these estimates don't reflect the variations in how each lender handles the question of closing costs and discount points, which affect your out-of-pocket expenses.

Get Multiple Mortgage Offers at Once
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Minnesota is a fairly large state, which makes it reasonable to expect that the market for real estate and home financing might change a little depending on where you go. While we found that to be true where property values were concerned, the average mortgage rate in each metro area wasn't terribly different from the state's overall average.

AreaAverage mortgage rateMedian home value
Minneapolis-St. Paul-Bloomington4.51%$272,586
Duluth4.53%$167,496
Rochester4.35%$207,122
St. Cloud4.56%$189,681
Average rate is for a 30-year mortgage with a 20% down payment.

According to the estimates we've seen for Minnesota, the rate you get for a mortgage in Minneapolis won't be too far off the rate you get in Duluth, St. Cloud, or any other part of the state. However, the price tag of a typical home in each of these metro areas leans much more heavily on local conditions. It's important to remember that your monthly mortgage payment will be a product of both your rate and your loan amount.

All this means that Minnesotans don't have to worry about mortgage rates changing based on where they decide to settle. But as we've explained, these numbers definitely will change over time and in response to your financial profile. Making sure that you have the savings and credit history to justify your desired loan amount ensures you'll see a reasonable interest rate on the financing you need to buy a home.

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Get Multiple Mortgage Offers at Once
LendingTree can help you find and compare mortgage rates, all without affecting your credit.
See Offers

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Get Multiple Mortgage Offers at Once
Get Multiple Mortgage Offers at Once
LendingTree can help you find and compare mortgage rates, all without affecting your credit.
LendingTree is our ultimate parent company
See Offers

on LendingTree's secure website. NMLS #1136: terms and conditions apply

Powered by
LendingTree is our ultimate parent company