Minnesota mortgage rates are currently some of the most consistent in the country.There are many things that make Minnesota a great place to live, raise a family, and own a home. Minnesota has long been known for having a b education system, a great arts and academic community, as well as a commitment to fitness – including taking on regimens such as winter biking, even though temperatures during much of the year are far below freezing. The Minnesota “thick skin” doesn’t just provide both native and newly adopted Minnesotans with protection against questionable weather, it also helps solidify the b sense of pride and loyalty in the state. For example, Minnesotans tend to lend b support to the home team regardless of whether their team is winning or losing in any given season.
How’s the Minnesota Marketplace?
Just as there are ups and downs when it comes to Minnesota weather, there is also a good deal of movement in the housing market. Homes are generally made from similar materials no matter where you go, but the price can vary a lot depending on where you are in the country. In Minnesota, these are close to average. Data from Zillow.com placed the median value of Minnesota homes at $184.500 in 2015. By the end of 2016, values are expected to rise by 2.3% and climb to an average of over $210,000 per listing.
Minnesota mortgage rates are staying right on par with the rest of the country. The most popular mortgage choices are the 30 year fixed mortgage, which as of 2/13/15 was averaging at 3.6% in Minnesota, and 3.65% nationwide. For a 15 year fixed mortgage, Minnesota’s rate was averaging at 2.86%, while it was 2.95% across the country. Those who choose a 5/1 year adjustable rate mortgage would typically pay 2.78% in initial interest as a Minnesota borrower, and 2.83% on average nationally.
The exact rate that you pay, of course depends on a number of factors including income, credit worthiness, and any potential programs you may qualify for, such as a loan for a first time home buyer or a VA loan.
What Can Minnesota Offer you?
Although growth is a bit slower than it has been in recent years, there are new trends that are in the early stages that bring a little more hope to those families who are on a tighter budget, or have less than perfect credit.
If you have wanted to buy a home in Minnesota before, but have had trouble qualifying, 2016 may be the right year to try again. While housing prices are beginning to creep up, there are still a lot of great homes that could either be the home that can get your family into your first home, or reintroduce you to home ownership if you had to give up on another home during the last housing crisis.
After 2008, when lenders were suddenly watched very closely regarding their lending practices, there was a tighter hold placed on mortgage loans as well. In order to qualify to purchase a home a ber credit history and score was needed in order to be considered.
Of course, better credit is better, however the reigns are loosening. Since housing market growth has started to slow a bit in Minnesota, you’re more likely to be able to purchase a home for your family even if there have been a few bumps in your financial road. In many cases, families on a budget are able to find a house to their liking that gives them an opportunity to put in a bit of sweat equity in order to help them get the home they want
The price of a home and the interest rate aren’t the only factors in choosing where to settle down with your family. No matter what the mortgage payment is, you have to be able to pay it. In Minnesota, you have a pretty good chance of making that happen. The Bureau for Economic Analysis has looked at some of the economic realities that Minnesotans have experienced since the recession of 2008. They have noted that the economy has become quite diverse. Where raw materials once played a more dominant role in the state’s economy, finished products are having a growing impact as well. Unemployment in the state has been relatively low, and as of 2015 is was just 3.7%.
Where Should You Live in Minnesota?
Mile for mile, Minnesota is among the largest states in the country, but some areas are drawing in more home buyers than others. The Twin Cities (aka, Minneapolis and St. Paul are the most popular. There are plenty of cultural and other urban conveniences, such as job diversity that keep many people wanting to live in one of these major cities or in a suburb close enough to commute. In 2015 the Median home value in Minneapolis was $202,500, and in St. Paul it was $164,900.
Rochester, MN is good choice for families who are on a tighter budget, or for those who need access to excellent medical care — as the city is home to the esteemed Mayo Clinic. Things such as good schools, and shopping are easily accessible as well, and with the 2015 median home value at $135,900 the cost of living is notably less than the twin cities.
Houses are even less expensive for those who live in Duluth, MN, however Duluth has been a market to watch. The average home value was $126,300 in 2015 after coming off a 9.3% climb the year before, and projections see values rising another 6% in 2016.
One place outside of the Twin Cities that is less of an immediate bargain is St. Cloud, MN. St. Cloud is a college town about an hour north of the Twin Cities. The median sales price on a home in this area in June-September 2015 was up over $172,000 and had climbed more than 20% over the previous trimester. A number of factors, including the expansion of some public transportation between St. Cloud and the Northern suburbs of the Twin Cities may be a factor in the growth, as it opens the Twin Cities up as potential places to work.
Where Can You Find Guidance Toward the Right Home?
Regardless of where in Minnesota you want to live, it can be intimidating to head into the housing market blindly. The real estate agents connected with Movoto.com are dedicated to helping current and soon to be Minnesotans find the perfect home.
2 Point Highlight
Since housing market growth has started to slow a bit in Minnesota, you’re more likely to be able to purchase a home for your family even if there have been a few bumps in your financial road.
Minnesota mortgage rates are staying right on par with the rest of the country.
