Thursday, October 10, 2024
HomeMinnesota Breaking NewsHow Much Rising Mortgage Rates Could Cost Homebuyers in Minnesota

How Much Rising Mortgage Rates Could Cost Homebuyers in Minnesota

imageForEntry44 tn8Interest rates on mortgage loans are rising rapidly in the United States. As the Federal Reserve pursues an aggressive strategy of rate hikes to curb inflation, homebuyers are increasingly saddled with higher borrowing costs.

The national average 30-year fixed mortgage rate is now approaching 6%, up from just 3.79% in January. The rate increase could mean tens of thousands of dollars more in interest payments for new homebuyers this year.

A recent report published by loan platform LendingTree reviewed home sale and mortgage data to quantify the effect rising mortgage rates could have on homebuyers.

In Minnesota, the average APR – annual percentage rate – on a mortgage rose from 3.77% in January to 5.22% in April. This increase means that a homebuyer who took out a mortgage in April will pay about $244 more per month in interest than one who took out a mortgage in January, based on the average mortgage amount of $283,885 across Minnesota.

Accounting for both average home values and mortgage rates, the increase in interest rates from January to April for the typical homebuyer in Minnesota will add up to $2,931 more in the first year alone and $87,938 over the lifetime of the 30-year mortgage – the 21st smallest increase among states.

All data in this story is from the report Rising Mortgage Rates Could Cost Some Homebuyers More Than $100,000 Over Lifetime of Loans from LendingTree.

Rank State Extra amount paid over 30-year lifetime of mortgage ($) Average APR, January 2022 (%) Average APR, April 2022 (%) Average mortgage amount, 2022 ($)
1 California $146,441 3.70 5.09 493,578
2 Washington $128,659 3.76 5.11 447,400
3 Massachusetts $121,404 3.69 5.10 407,532
4 Colorado $119,165 3.72 5.18 382,571
5 New Jersey $117,029 3.62 5.08 379,914
6 Utah $117,001 3.68 5.16 369,811
7 New York $111,171 3.68 5.17 351,169
8 Oregon $105,221 3.76 5.20 343,115
9 Hawaii $104,225 3.73 4.88 427,901
10 Virginia $102,478 3.81 5.18 352,105
11 Idaho $102,215 3.76 5.26 319,046
12 Arizona $101,399 3.91 5.32 333,636
13 Delaware $101,231 3.69 5.18 320,533
14 Maryland $101,075 3.77 5.15 342,355
15 Montana $100,396 3.60 5.11 313,336
16 Nevada $100,135 3.85 5.23 339,422
17 Alaska $99,192 3.58 5.05 317,575
18 Florida $96,397 3.76 5.25 303,884
19 Maine $95,671 3.78 5.38 278,694
20 New Hampshire $94,856 3.82 5.22 316,939
21 Vermont $94,636 3.73 5.39 266,045
22 Rhode Island $94,514 3.69 5.12 310,590
23 North Carolina $94,047 3.76 5.21 304,239
24 Connecticut $94,020 3.73 5.13 314,565
25 Illinois $92,828 3.78 5.23 298,441
26 Texas $92,011 3.80 5.21 306,217
27 Georgia $89,852 3.84 5.24 299,992
28 Pennsylvania $88,560 3.80 5.31 273,634
29 New Mexico $87,967 3.87 5.44 260,309
30 Minnesota $87,938 3.77 5.22 283,885
31 South Dakota $86,748 3.53 5.12 257,301
32 North Dakota $86,317 3.74 5.30 257,718
33 Nebraska $85,939 3.74 5.29 259,503
34 Louisiana $84,895 3.85 5.39 256,150
35 Wyoming $83,873 3.85 5.22 284,989
36 Tennessee $82,793 3.96 5.35 275,815
37 Kansas $82,295 3.84 5.30 261,988
38 South Carolina $78,680 3.91 5.29 264,716
39 Alabama $77,830 3.91 5.40 242,175
40 Oklahoma $77,722 3.84 5.36 237,849
41 Indiana $77,283 3.90 5.42 236,701
42 Mississippi $76,524 3.88 5.39 235,123
43 Michigan $76,106 3.87 5.32 244,039
44 Arkansas $75,914 3.81 5.25 246,672
45 Iowa $74,874 3.84 5.34 233,618
46 Wisconsin $74,813 3.89 5.34 240,729
47 Missouri $72,939 3.99 5.46 229,615
48 Kentucky $72,820 3.91 5.41 224,562
49 West Virginia $72,292 3.86 5.47 207,300
50 Ohio $71,837 3.94 5.33 241,517
RELATED ARTICLES

Most Popular

Recent Comments