Both buyer and seller activity increased statewide in September. More than half of Minnesota counties showed year-over-year gains in both sales (58.6%) and new listings (54.0%).

Mortgage rates have improved significantly, dropping to around 6.35% in September from 6.82% in June and nearly 7.0% in January. Home buyers, especially first-timers, are sensitive to rate changes, and even small improvements in affordability will bring more buyers off the sidelines.

"Higher mortgage rates and tight inventory have been the biggest factors holding back sales this year," said Patti Jo Fitzpatrick, President of Minnesota Realtors®. "But with the ‘friendlier’ rates and more inventory lately, activity could pick up in the fourth quarter."

The housing market remains "rate dependent," rates are "Fed dependent," and the Fed is "data dependent." Recent economic data makes rate cuts more likely. In the coming months, the 10-year yield—which informs mortgage rates—is one of several key indicators to watch.

September 2025 Statewide Key Market Indicators (% represents year-over-year change):