How Interest Rate Hikes Could Affect Twin Cities Housing Market

CBS Minnesota

May 6, 2022

Higher interest rates are making some prospective buyers shift their focus in a hot housing market. The Federal Reserve raised rates by half a percent Wednesday bringing it to a 10-year high.

For borrowers, that means they’re paying nearly $400 more a month on a $300,000 mortgage than they were a year ago.

Even with the bump, experts still said it’s still a good time to borrow money. Historically speaking, the bump is still pretty low compared to the double digit interest rates in the 80s or even in 2010.

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