Mortgage Rates in Minneapolis, Minnesota — March 2026
Updated March 2026 | Based on Minneapolis market data and regional lending conditions
Minneapolis is a mid-sized city in Minnesota with a population of 429,954. The current 30-year fixed mortgage rate in Minneapolis is 6.69%, which is 0.04% above the national average. With a median home price of $325,000 and a 20% down payment of $65,000, homebuyers can expect a monthly principal and interest payment of approximately $1,676.
Current Mortgage Rates in Minneapolis, MN
Below are the current average mortgage rates available in the Minneapolis area as of March 2026. Rates vary by lender, credit score, and loan-to-value ratio. Use our free calculator above to see your personalized estimate.
| Loan Type | Rate | National Avg | Difference |
|---|---|---|---|
| 30-Year Fixed | 6.69% | 6.65% | +0.04% |
| 15-Year Fixed | 5.93% | 5.89% | +0.04% |
| 5/1 ARM | 6.19% | 6.15% | +0.04% |
| FHA | 6.29% | 6.25% | +0.04% |
| VA | 6.09% | 6.05% | +0.04% |
| Jumbo | 6.89% | 6.85% | +0.04% |
Minneapolis Housing Market Overview
The Minneapolis housing market reflects moderate demand with prices near the national average. The median household income in Minneapolis is $63,563, and the cost of living index is 105.1 (national average = 100). Based on the 28% affordability rule, you would need an income of approximately $84,814 to comfortably afford the median-priced home in Minneapolis, which exceeds the current median household income.
Monthly Payment Breakdown for Minneapolis
Based on the median home price of $325,000 with 20% down ($65,000), here is what you can expect to pay monthly in Minneapolis:
15-Year vs. 30-Year Mortgage in Minneapolis
Choosing a 15-year mortgage in Minneapolis at 5.93% instead of a 30-year at 6.69% would save you $210,240 in total interest over the life of the loan. However, your monthly payment would be $2,184 instead of $1,676 — an increase of $508 per month.
Calculate Your Minneapolis Mortgage Payment
Use our free calculator to get a personalized estimate based on your loan amount, interest rate, and term.
Open Free CalculatorFrequently Asked Questions About Mortgages in Minneapolis
What are the current mortgage rates in Minneapolis, MN?
As of March 2026, the average 30-year fixed mortgage rate in Minneapolis, Minnesota is 6.69%, while the 15-year fixed rate is 5.93%. FHA loans average 6.29% and VA loans 6.09%. These rates are 0.04% above the national average of 6.65%.
How much is a monthly mortgage payment in Minneapolis?
Based on the median home price of $325,000 with 20% down, the estimated monthly mortgage payment in Minneapolis is $1,676 for principal and interest. Including property taxes of $303/month, the total monthly housing cost is approximately $1,979.
What income do I need to buy a home in Minneapolis?
Using the 28% rule, you would need an annual income of approximately $84,814 to afford the median-priced home in Minneapolis at $325,000. The median household income in Minneapolis is $63,563. This means most households would need to either earn above the median or consider homes below $325,000.
Is Minneapolis a good place to buy a home in 2026?
Minneapolis has a moderate cost of living with a cost of living index of 105.1 (national average = 100). The property tax rate in Minnesota is 1.12%, which is near the national average. Minneapolis has a population of 429,954 and offers a balanced lifestyle.
Mortgage Rates in Other Minnesota Cities
Related Tools & Guides
Last updated: March 2026. Rates are approximate averages based on regional lending data for the Minneapolis, Minnesota area. Individual rates may vary by lender, credit score, loan amount, and other factors. Use our free calculator for a personalized estimate.