Interest rates up again

I know I wrote about how rates were headed in the right direction. They did go down a little but after last week’s rate hike by the federal reserve, they went up to 6.81% for the 30-year conventional mortgage. (Freddie Mac)

That is high, especially considering how expensive houses are. Last week I was talking with some older homeowners who pointed out that when they bought a house rates were over 8%. At the time one of them had a job that paid $3.50 an hour and the house cost $15,000.  The house cost about the same as two years’ income.

The table below shows how much income is needed to buy a house in Minnesota. The numbers are provided by Minnesota Housing Agency.

Household Size 11-County Twin Cities Metro Area* Dodge and Olmsted Counties
1- 2 Person $89,000 $89,000
3 Person $101,000 $101,000
4 Person $112,000 $112,000
5 Person $121,000 $121,000


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