Mortgage rates in Minnesota
Average 30-year fixed 6.49% · Updated July 9, 2026 · Freddie Mac (FRED)
The Twin Cities anchor a stable, high-employment housing market. Below is what buying at Minnesota's median price looks like at today's national average rate, plus the local property tax and assistance that actually change your payment.
What a mortgage costs in Minnesota
The interest rate on a Minnesota mortgage is the same 6.49% national average a lender would quote anywhere — rates are set by the bond market, not by your state. On Minnesota's median $399,900 home with 20% down, the balance comes to $319,920, or about $2,020 a month in principal and interest.
What makes Minnesota different is the cost around the loan. Its 1.08% effective property-tax rate adds roughly $360 a month, and homeowners insurance about $150 more — bringing the all-in estimate to $2,530. Those local costs, not the interest rate, are what set Minnesota apart. Your own price and down payment will move the number — work backward from your income with the what-you-can-afford calculator.
Getting approved in Minnesota
Federal HMDA lending records show Minnesota lenders originated 122,789 home loans in 2025 and denied 25,153 applications — an approval rate near 83% among decisioned applications, against 76.6% nationwide. See how all 50 states compare in our approval-rate rankings, and how Minnesota ranks for mortgage complaint analysis (5,117 on record).
Shopping for a loan? See the most active mortgage lenders in Minnesota, ranked by federal HMDA volume.
Down-payment help in Minnesota
You rarely need 20% down. Minnesota Housing — Minnesota's housing finance agency — runs the state's main assistance program: Monthly Payment and Deferred Payment loans provide up to $18,000 in assistance. Eligibility usually turns on income limits and a homebuyer-education course. Check current terms at Minnesota Housing, see how a smaller down payment changes your number with the down-payment need calculator, or compare all state assistance programs.
Minnesota mortgage FAQ
What is the current mortgage rate in Minnesota?
As of July 9, 2026, the U.S. average 30-year fixed rate is 6.49%. The note rate itself is set nationally, not by state — a lender prices your Minnesota loan the same way it would anywhere, based on your credit, down payment and loan type.
What changes locally is everything around the rate: Minnesota's ~1.08% effective property tax, insurance costs, and which assistance programs apply.
What is the monthly payment on a typical Minnesota home?
On Minnesota's median home price of about $399,900 with 20% down at today's 6.49% average 30-year rate, expect roughly $2,530/month — that's $2,020 principal and interest plus about $360 property tax and $150 insurance. Adjust the numbers for your exact price and down payment in our calculators.
How hard is it to get approved for a mortgage in Minnesota?
In 2025, Minnesota lenders originated 122,789 home loans and denied 25,153 applications — an approval rate of about 83% among decisioned applications, versus 76.6% nationally, according to federal HMDA data. See how every state ranks in our mortgage approval report.
Rates shown are national weekly averages for general guidance, not an offer or personalized quote. Payment estimates assume the down payment noted plus estimated taxes and insurance. Confirm current pricing with a licensed lender.