Twin Cities Market Trends

30-Year Fixed Mortgage Rates

Annual averages of weekly Freddie Mac Primary Mortgage Market Survey data

Source: Federal Reserve Bank of St. Louis (FRED · MORTGAGE30US)

Key insight: Rates hit historic lows near 3% in 2020–2021 before the Fed's aggressive hiking cycle pushed them above 7% in 2023. Current rates around 6.4% are near the 30-year median — not historically extreme.

Minneapolis-St. Paul Home Price Index

Normalized to 100 = year 2000 baseline. Measures repeat-sale price appreciation.

Source: FHFA via FRED (ATNHPIUS33460Q)

Key insight: MSP home values have more than tripled since 2000 (index ~300+). Even after the 2008 correction, prices recovered within 6 years and continued climbing — demonstrating the long-term resilience of Twin Cities real estate.

Renovation Cost Index vs. Home Value Growth

Compares general inflation (CPI), estimated renovation cost inflation, and home price appreciation.

Source: BLS CPI via FRED (CPIAUCSL) + FHFA HPI

Key insight: When the Home Value line is above the Renovation Cost line, renovating generates positive equity. From 2012–2022, MSP homeowners who renovated saw strong returns. The gap has narrowed since 2022 — making project selection and cost management more important than ever.

Mortgage Rate History — Annual Averages

Each bar represents the annual average of weekly rate observations.

Source: Freddie Mac PMMS via FRED (MORTGAGE30US)

Ready to Buy?

Use our Finance & Planning calculator to model your monthly payment at today's rates and see how much home you can afford in the Twin Cities.

Planning a Renovation?

Renovation costs have risen ~40% since 2019. Get a ballpark estimate for your project and see which improvements deliver the best ROI.

Thinking of Selling?

MSP home values are near all-time highs. Maria Palmer at Edina Realty can give you a free comparative market analysis for your specific neighborhood.