Duplex Mortgage Rates Drop To Lowest Point This Year

Amidst all the noise in the news, it would be easy to miss the good news for Minneapolis and St Paul duplex owners.

Mortgage interest rates have fallen to an average of 6.57%; their lowest rate in 10 months.

This was caused, in part by investors moving their money to 10 year treasury notes, which are perceived to be a risk-free asset. They moved their money to into these notes due to last week’s weaker than expected jobs report. When more people want to invest in them, the treasury doesn’t have to offer as much interest to entice investors.

This is good news if you’re currently in or have been thinking about buying a duplex. There’s more inventory than there’s been in years, and many would-be buyers are waiting on the sidelines for rates to fall, as the jobs report also fueled speculation that the

Of course, lenders always price anticipated interest rate deductions in advance of any announcements made by the Federal Reserve. That’s because they need to make loans in August and September, so they estimate if there is a fed rate reduction, how much it will be. They then price it into their loans in advance to entice would-be borrowers not to wait.

The good news is most buyers don’t know this. And right now, there’s more duplex, triplex and fourplex inventory for sale in the Twin Cites than there has been in quite some time. For duplex buyers in the market right now that means more bargaining power and an opportunity to finance the loan on a purchase at a lower rate.

Better yet, since it takes 30 to 45 days between an accepted purchase agreement and closing, if the rates do change for the better, the buyer can still take advantage of it. And if rates go up, locking in the current interest rate prevents them from being subject to it.

If you’re thinking of buying a duplex; whether as a house hack or an investment property, give me a call. I’d be happy to discuss options with you in order to chart the best path forward.