Is Now the Best Time to Buy a Minneapolis Condo?

August 30, 2019 by Joe Grunnet

In the last few weeks, interest rates have fallen to historic lows. But does that mean now is the right time for you to consider buying a Minneapolis condo or loft? Your urban realtors at Downtown Resource Group (DRG) reached out to JJ Ellingson with LeaderOne Financial Corporation and asked him to weigh in on this current market trend. Here’s what he had to say!

A Quick Word from JJ Ellingson About Buying a Condo

First and foremost, I’m a firm believer in buying when the time is right and not just because rates or home prices are low. For instance, if a buyer isn’t financially ready or is possibly moving in less than two years, buying right now just doesn’t make sense.

However, if you’re considering buying or you’re on the fence, the current historically low interest rates can make buying now very enticing. In the last 52 weeks, the benchmark 30 year fixed averaged around 4.66 percent and had a 52-week high of 5.10 percent. In today’s market, we’re seeing 30-year fixed rates down to 3.5% in some cases. A buyer who finances $200,000 at 3.5% would save $187.81 per month compared to a $200,000 loan at 5.1 percent.

Another way to look at that is a buyer financing $200,000 at 5.1% could finance $241,825 at 3.5% for the exact same payment. That rate difference alone increases his or her buying power by $41,825!

With rates decreasing in 2019, I often am asked, “How much lower will they go?” or “How long will these rates last?”. The truth is no one knows what tomorrow’s rates will be or how long this trend will last. There are so many variables that impact rates from national economic news to global news. Rates can change dramatically up or down in an instant and without any notice!

But with all that being said, fixed interest rates are much better than last year and for those buying now, you’re getting a rate that you can be happy with for 30 years.

Ready to Start the Buying Process?

If you’re thinking of buying a Minneapolis condo or loft, we recommend connecting with an urban realtor and reaching out to a loan office like JJ Ellingson to get pre-approved! Still on the fence? Take some time to search around on our condo guide to get excited about purchasing your new home in downtown Minneapolis!

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