Mortgage Rates Hold at 7.40%: What Twin Cities Buyers Should Know

Mortgage rates held steady this week. Freddie Mac’s Primary Mortgage Market Survey, released Thursday, Oct. 15, 2026, puts the average 30-year fixed rate at 7.40%, the same as the week before, while the 15-year rate edged down. Here’s what that means if you’re shopping for a home in Minneapolis, St. Paul or the suburbs.

This week’s numbers

• 30-year fixed: 7.40% on average, unchanged from last week (and up from 7.28% two weeks ago). A year ago it was 6.27%.
• 15-year fixed: 6.71% on average, down from 6.73% last week. A year ago it was 5.52%.

The Federal Reserve Bank of St. Louis (FRED) shows the same figures for this week. These are national averages of rates lenders offered over the prior Thursday through Wednesday. Your own rate will depend on your credit, down payment, loan type and lender.

What it means on a $350,000 loan

• 30-year at 7.40%: about $2,423 a month
• 30-year at 6.27% (a year ago): about $2,160 a month, roughly $264 less
• 15-year at 6.71%: about $3,089 a month, paid off in half the time

These are our own calculations from the weekly averages, covering principal and interest only. Property taxes, homeowners insurance, mortgage insurance and any HOA dues all add to the real monthly cost.

Tips for Twin Cities buyers

• Compare lenders. Ask at least two or three for a Loan Estimate and line up the rate, points and closing costs side by side.
• Ask about the rate lock. Know how long it lasts and what an extension costs if your closing date slips.
• Check the property taxes city by city. Taxes differ between Minneapolis, St. Paul and each suburb, so look up the county record for the exact home before you set a budget.
• Look at HOA dues on condos and townhomes. They count toward what a lender thinks you can afford.

Sources: Freddie Mac Primary Mortgage Market Survey; FRED 30-Year and 15-Year Fixed Rate Mortgage Averages. Checked Oct. 16, 2026.

Please confirm details yourself. Rates change often and this is general information only, not financial advice. Talk with a licensed lender about your situation.

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Sponsored by Dan DeMark, Realtor | LPT Realty
Buying or selling in Minneapolis, St. Paul or the Twin Cities suburbs? Contact Dan for a real home valuation and help understanding what you’ll pay before you make a move.
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Photo: William H. Lightner House, St. Paul, by Bmzuckerman, CC BY 4.0, via Wikimedia Commons.