What is the average mortgage rate in Minnesota in 2026?
Around 7.46% as of October 19, 2026, in line with national average.
Best Mortgage Rates Minnesota 2026
Minnesota has a strong housing market with a median home price of $385,000 in early 2026. The state has a real estate transfer tax of 0.33% and the highest top income tax rate among Midwest states at 9.85%.
30-year fixed
7.46%
National avg
15-year fixed
6.82%
National avg
5/1 ARM
6.82%
National avg
| Product | Rate (APR) |
|---|---|
| 30-year fixed (national avg) | 7.46% |
| 15-year fixed (national avg) | 6.82% |
| 5/1 ARM (national avg) | 6.82% |
Rates verified Oct 21, 2026
Rates shown are national benchmark averages from the site data file, not live quotes from lenders. Confirm pricing with banks and brokers in Minnesota. Not financial advice.
Minnesota at a glance
- Average home price: $385,000
- State income tax: Yes (9.85% top rate)
- Land transfer tax: Yes ($1.65 per $500, approximately 0.33%)
- Typical monthly payment: $2,145/mo on $385,000 with 20% down, 30-year term, at 7.46% — excludes taxes, insurance, and HOA.
Frequently Asked Questions
Does Minnesota have a real estate transfer tax?
Yes — $1.65 per $500 of sale price, approximately 0.33%.
What is the median home price in Minnesota in 2026?
$385,000 as of early 2026 — above the national median.
How much do I need to earn to afford a home in Minnesota?
To afford $385,000 with 20% down at 7.46%, you need approximately $90,000–$95,000 annual income.
Minnesota mortgage calculator · Educational reference only. Not financial or lending advice.