LaPorte Group Mortgage Bulletin
Serving Minnesota & Iowa | November 2025
Prepared by: Kip Wachal (NMLS #8872) – Broker/Owner
LaPorte Group Mortgage (NMLS #8909)
Market Overview
Mortgage rates remain steady heading into November, holding near late-summer levels. The bond market continues to react to inflation data and Federal Reserve comments, while regional housing activity across Minnesota and Iowa shows a modest seasonal slowdown — with fewer listings, stable demand, and cautious optimism from both buyers and sellers.
Key Trends:
Inflation has cooled slightly but remains above the Fed’s 2 percent target.
The 10-year Treasury yield has hovered around 4.5 to 4.7 percent, keeping mortgage rates in the mid-5 to low-6 percent range.
Local lenders report consistent purchase volume and a gradual uptick in refinance inquiries as borrowers consolidate debt or shorten loan terms.
Regional Highlights
Minnesota
Inventory remains tight in most markets, particularly Twin Cities suburbs and southern counties.
Demand for smaller, affordable homes is strong, and multiple-offer situations still occur for well-priced listings.
Local appraisers continue to support strong property values — good news for sellers and refinancers alike.
Iowa
Steady purchase demand in mid-size communities like Spirit Lake, Spencer, and Sioux Center.
Slight easing in appraisals and turn-times as volume moderates into winter.
FHA and USDA programs remain popular with first-time buyers.
Borrower Tips
Lock early: Rate volatility remains high — locking promptly can protect you from daily swings.
Compare terms: Many lenders are offering temporary buydown options (1-0, 2-1) to help manage initial payments.
Refinance check-in: If you purchased in 2023 or early 2024, review your current rate; modest savings or debt-consolidation opportunities may exist.
Stay documentation-ready: Updated paystubs, bank statements, and homeowners-insurance details help ensure smooth closings.
Looking Ahead
Economic forecasts suggest the Fed may pause further rate hikes into early 2026, which could stabilize mortgage pricing.
If inflation continues cooling, we could see modest rate improvement by late winter.
For those planning to buy in 2026, now is the time to update pre-approvals and review credit — even a small score bump can meaningfully lower costs.
LaPorte Group Advantage
As a local, independent mortgage broker, LaPorte Group works with multiple lenders across Minnesota and Iowa to find the most competitive programs — from Conventional to FHA, VA, and USDA.
We simplify the process, compare rate options side-by-side, and keep communication clear from application to closing.
Questions or ready for a rate quote?
Email: kip@laportegroup.net Phone: 507-847-4466