Should You Buy a Home in Minneapolis Despite Higher Rates?

By Mark Callender

Hello, my name is Mark Callender and I am a licensed real estate agent with RE/MAX Results. Because I have been helping families buy and sell their homes for more than 18 years, I am now helping their children to buy their first homes and their parents to downsize. No matter the direction you’re moving, my goal is to make the process as calm and enjoyable as it can be.

Have you been thinking about buying a home in Minneapolis? Maybe you’ve noticed the constant chatter about mortgage rates and are wondering if it makes sense to hold off until they drop. That’s a common reaction, especially in a market where affordability plays such a large role.

There’s no denying that mortgage rates play a huge role in what you can afford. But here’s the part many buyers overlook: timing the market perfectly is nearly impossible, and waiting for the “perfect” rate could end up costing you more in the long run. Here’s why.

When rates decline slightly. A slight decline in rates can trigger a significant surge in buyer activity. Many people who have been waiting on the sidelines will suddenly re-enter the market. When that happens, competition increases, and the chances of bidding wars go up. You might find yourself offering well over the asking price, simply to stay in the game.

The market is quieter. Sellers are more willing to negotiate, and in some cases, they are even contributing toward closing costs or rate buydowns. You may not get the lowest possible rate, but you might secure a better overall deal with less competition.

When to refinance. It’s also important to consider the option of refinancing. If you buy now at a slightly higher rate and rates fall later, you can refinance and lower your monthly payment.

What you cannot do is go back and lower the price you paid once values have risen. Home prices tend to climb when more buyers are active, and that could end up costing you more than any potential savings on the interest rate.

Why you shouldn’t wait. Buying a home is not just about rates. It’s about timing, preparation, and confidence in your next step. I’ve worked with buyers who waited too long, hoping for that perfect combination of low rates and available homes. Unfortunately, when they were finally ready, the market had shifted, and their opportunities had narrowed. That’s the risk of waiting.

If you feel financially prepared, now might be a good time to explore your options. This is not about rushing into a decision but about understanding how to navigate a changing market with a clear plan. Feel free to contact me at 612-961-9448 or through email at Mark@MarkCallenderHomes.com should you have any questions. We’ll review your situation, discuss current opportunities, and create a strategy that puts you in the best possible position.