There’s never been a better time to refinance in Minneapolis—at least, not in 2014. According to Freddie Mac’s weekly mortgage rate report, average rates for 30-year fixed rate mortgages is now at the lowest it’s been all year. This is good news for anyone who’s looking to buy a home in Minneapolis, but it’s great news for current homeowners hoping to reduce their rate through refinancing.

Current Minneapolis Mortgage Rates

As of this week, the average rate for a 30-year fixed rate mortgage in the U.S. was 4.21%, the lowest since last November, when rates dropped again to 4.16%. 15-year mortgages, popular for many people considering refinancing, are of course lower: 3.32%, down from 3.38% the week prior. For years economists have viewed 6% as the historical norm for a 30-year fixed rate mortgage, which reveals how low these current rates are. If you’ve been on the fence about refinancing, now is the time to secure these low rates.

World Events

Events in the Minneapolis metropolitan area have less effect on mortgage interest rates than what’s happening around the globe. China’s slow economic growth, paired with unrest in the Ukraine and a low GDP U.S. economic report resulted in low returns on U.S. Treasury bonds—which is used as the benchmark for determining mortgage rates. Few of these events may affect Minnesota, but they positively affect homebuyers and homeowners in the Land of 10,000 Lakes.

Refinancing for Minneapolis Homeowners

With fees and closing costs, refinancing does involve some upfront costs, but it can save you tens of thousands of dollars over the lifetime of your loan. If you’re paying a higher interest rate mortgage, we can asses your current situation with a cost benefit analysis to ensure refinancing will save you money and put you in better long-term financial health. Since the start of 2014 economists have predicted that interest rates would steadily climb throughout the year, so this sudden drop is a good window of opportunity to refinance before rates increase.

If you’re interested in  purchasing, refinancing, or learning more about mortgage rates in Minneapolis, simply fill out our Fast Response form or call our local branch at (952) 278-9900‎. Our experienced mortgage professionals would love to sit down and discuss your needs. We look forward to hearing from you!