Welcome to this edition of the Minneapolis mortgage update August 2025 Market Moves & Industry Insights, your bi‑monthly snapshot of what’s shaping our industry across the Twin Cities and beyond.
As always, we’re honored to share the Minneapolis mortgage and market update for real estate agents and transaction coordinators, sourced from our trusted experts in mortgage and market intelligence. For a broader view of Minnesota housing trends, see our Minnesota Housing Market 2025 Year-End Update.
Mortgage Rate Snapshot
As of August 26, 2025, here’s a look at the Minneapolis mortgage update August 2025 on rates across premier loan programs:
Brought to you by our trusted leader in the mortgage industry
📞 Betsy Lowther
Mortgage Branch Manager, Luminate Bank (NMLS #222188)
612-418-3600 • Betsy.Lowther@goluminate.com
| Loan Program | Interest Rate | APR |
| Conventional (5% Down) | 6.50% | 6.631% |
| FHA (3.5% Down) | 6.00% | 6.870% |
| VA (Zero Down) | 6.00% | 6.459% |
| Conventional 5% Down (Special) | 6.375% | 6.505% |
| Jumbo (25% Down) | 6.25% | 6.454% |
* Based on 30‑year fixed, 740+ credit score, single‑family home, .75% discount points, using a $375K purchase price.
** Special applies to incomes under 80% AMI.
*** Jumbo pricing reflects a $1.3M purchase, 760 credit, single-family, with .75% discount points.
(Rates are illustrative—subject to market changes.)
Check out our other blogs. Attention is the currency in today’s world, and Financial FOMO Marketing Tips
This update is part of our ongoing Monthly Market Stats for Minnesota real estate agents.
Fresh Market Trends Minneapolis mortgage update August 2025
Rates Holding Near Lows: At ~6.58%, today’s average 30-year fixed mortgage rate remains at its lowest point in nearly 10 months, offering a small but notable boost in affordability. fieldpalmer.com purplebricks.co.uk AP News.
Projected Dip Ahead: Experts forecast rates may fall toward 6.3% by early 2026, potentially unlocking refinancing opportunities for millions of homeowners. Investopedia.
Fed & Treasury Impact: Even with possible Fed rate cuts, mortgage rates remain closely tied to 10-year Treasury yields, maintaining a steady yet competitive near-term outlook. MarketWatch.
From Inman’s “Mortgage rates drop sharply as Powell shifts stance on rate cuts” or their weekly mortgage brief for fresh, localized insight when available, Inman+1.
Offer Stats 2025 Insights
Stats are based on offers submitted to our ProfileTM offer Team as of August 27, 20025.
- Buyer Trends: New buyers (172) now outpace repeat buyers (151), signaling strong demand from fresh entrants to the housing market.
- Pricing Dynamics: Homes are selling at 99.59% of the list price—nearly dollar-for-dollar with the asking price, showing minimal discounting power for buyers.
- Appraisal Gaps: A striking 97.8% of offers carried no appraisal gap, with only 2.2% including one, highlighting more conservative buyer strategies.
- Inspection Decisions: 17.6% of buyers waived inspections, while most (82.4%) opted in, with an average inspection period of 5 days.
- Escalation Clauses: Only 12.4% of offers included escalation clauses, averaging $443.65 when used.
- Closing Costs: 21.4% of sellers covered buyer closing costs, while the majority (78.3%) did not.
- Loan Mix: Conventional loans dominate at 63.8%, followed by FHA (18%) and Cash (11.1%).
- Contingencies: 18.6% of offers were contingent on a home sale, while most (78.6%) were not.
- Multiple Offers: Activity peaked in April 2025 with 29 multiple-offer situations, but softened by midsummer.
➡️ Takeaway for Agents: This data shows a more balanced, but still competitive market. First-time buyers are entering strongly, while inspection and appraisal gaps are being approached more cautiously. Agents who can streamline transactions and provide clear advice will win more clients.
Why Transaction Coordinators Matter in Minneapolis
In today’s competitive landscape, every detail matters:
- Time Savings: A professional transaction coordinator ensures no deadlines are missed and all compliance paperwork is handled.
- Client Confidence: By removing administrative burden, agents can focus on negotiation and relationships—two critical advantages in multiple-offer markets.
- Scalable Growth: Agents leveraging ProFile Plus gain not just coordination, but also social media management, database oversight, and QuickBooks assistance—a complete growth platform.
At ProfileTM, we partner with agents who are ready to elevate their business, attract more clients, and close deals with less stress.
Profile Plus Leverage for Agents
Now is the time to lean on experts who can provide clarity, leverage, and growth. Whether you’re managing your highest transaction volume yet or preparing for an uptick in buyers this fall, ProfileTM’s Transaction Coordination and ProFile Plus services give you the edge.