Minnesota mortgage and refinance rates

As of Thursday, June 18, 2026, current mortgage rates in Minnesota are 6.53 percent for a 30-year fixed mortgage and 5.95 percent for a 15-year fixed mortgage.

Mortgage rates in Minnesota — and around the U.S. — have remained above 6 percent, and often above 7 percent, for most of the last two years. Rates on 30-year mortgages have finally begun to decrease recently, due to economic uncertainty, and currently fall between 6 and 7 percent. Many experts expect this trend to continue, with averages decreasing modestly — though remaining at least slightly above 6 percent — for the rest of 2025.

Mortgage refinance rates have more than doubled in Minnesota and throughout the U.S. since they bottomed out during the pandemic. On the other hand, if you took out your mortgage when rates were closer to 8 percent, it may make sense to refinance now. Refinance rates, like mortgage rates, have pulled back a bit, and they now average between 6 and 7 percent for both 30-year and 15-year refinance terms. 

That said, home values have also risen rapidly in many parts of the country, including Minnesota. About 48 million U.S. homeowners have access to home equity, with an average of $213,000 in tappable equity available, according to a recent ICE Mortgage Monitor report. While refinancing may not get you a lower rate, a cash-out refinance could be a way to fund larger expenses more cheaply than other forms of borrowing.

While median home prices in Minnesota are less expensive than the national median, they're increasing more quickly than in some other parts of the country. And buyers in many parts of the state may still face competition, with the supply of homes still leading to a seller's market in some areas. 

• Median home sales price, August 2025: $375,000
• Median home value, August 2025: $357,500
• Median down payment, August 2025: $52,500
• Median days on market, September 2025: 32
• Percentage of homes sold above list price, September 2025: 31.9 percent
• Percentage of homes with price drops, September 2025: 35.8 percent
• Homeownership rate, Q2 2025: 69.7 percent

Sources: ATTOM, Redfin, U.S. Census Bureau

If you want to make Minnesota your home, you have several mortgage options to choose from — each with its own qualifying criteria:

• Minnesota conventional mortgages: To qualify for a conventional mortgage, you’ll need a minimum credit score of 620 and a debt-to-income ratio (DTI) of no more than 45 percent. If you make a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI) premiums as well.
• Minnesota FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to obtain a loan insured by the Federal Housing Administration (FHA). If you have a credit score of at least 580, you could qualify for an FHA loan with a down payment as low as 3.5 percent.
• Minnesota VA loans: If you’re a veteran, active-duty member of the military or a surviving spouse, you might qualify for a mortgage guaranteed by the Department of Veterans Affairs (VA). A VA loan doesn’t typically require a down payment and you won’t have to pay for mortgage insurance, but you do need to pay a funding fee, which ranges from 1.25 percent to 3.3 percent of the loan amount.

Minnesota Housing, the state’s housing finance agency, can help make buying a home more affordable. Here’s an overview of Minnesota Housing programs:

• Minnesota Housing Start Up: This program for first-time homebuyers offers competitive rates on mortgages, and can be paired with assistance worth up to $18,000 toward your down payment or closing costs. To qualify, you must meet income and purchase price limits.
• Minnesota Housing Step Up: If you don't qualify for the Start Up program, Step Up is a similar program, with a higher income limit. 
• Minnesota Housing deferred payment loans: These loan options, which are also intended to fund down payment and closing costs, come with zero interest and no monthly payments. However, you may have a large balloon payment due at the end of the loan term.