October 2025 Newsletter

Mortgage rates will likely hover above 6% with rates averaging 6.27% as of mid-October, according to Freddie Mac. The projection of 30-year fixed rate mortgage rates will roughly remain in the range of 6% to 6.5% through the end of 2028. With mortgage rates not expected to decline further, housing supply has increased in recent months which will ease home-price growth and provide more housing options for prospective buyers per MBA Chief Economist, Mike Frantantoni. The increase in inventories will put downward pressure on home prices across the country. Buyers are shifting to adjustable-rate mortgages (ARM), Buydowns or FHA to manage affordability.

As of October 13^th, showing activity locally was up 1.5% compared to a year ago. The largest gain in showing activity took place for homes in the $500-600K price range. Homes priced between $300-400K still had the largest share of showings.

STATES SEEING MORE FORECLOSURES

Nevada earned the distinction of leading the nation in foreclosure rates last month, with 1 in every 2,326 residential properties facing a default.
Florida clinched the No. 2 spot with a foreclosure filing rate of 1 in every 2,420 housing units, followed by Maryland (1 in every 2,566), South Carolina (1 in every 2,588), and Illinois (1 in every 2,727).
“They are heavily reliant on the tourism industry,” explains Berner, senior economist at Realtor.com. “Tourism tends to be volatile, and when economic growth slows as it has this year, that industry is the first and most painfully impacted. Some homeowners in these States may be losing their jobs and becoming unable to make their mortgage payments.”

SCAMS ON LAND

Scammers are impersonating “out-of-town” property owners of vacant and agricultural land. These scams typically involve electronic communication only, with the fraudster using names that match property title records and sometimes providing legitimate-looking documentation. They push for a quick sale before the fraud is discovered, often at closing.
The National Association of Realtors has issued warnings on these scams in recent years, which we’ve adapted with Minnesota-specific resources and reporting information. Review the warning signs and protect yourself.
These is a complimentary service that may interest you – Property Fraud Alerts. Simply sign up with your country to receive automated alerts. To access, click “Minnesota counties’ registration sites.” Locate your home or land county and create your account. From there, you’ll be able to specify your preferred communication method(s).

VETERANS

As of July 30, 2025, the VA Home Loan Program Reform Act was signed. It is designed to provide federal assistance and a crucial safety net for veterans struggling with the Department of Veterans Affairs-backed mortgages. It replaces the Veterans Affair Servicing Program (VASP). It is recommended you reach out to 1) your mortgage company to discuss your situation and inform them you are seeking assistance, 2) contact your nearest DAV benefit advocate for guidance and to stay informed about the program’s availability.

Your Real Estate Professional since 1974

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Business 612-790-3015
E-mail: Betty@BettyCole.com or BettyCole@EdinaRealty.com

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Status Definitions

For sale: Properties which are available for showings and purchase

Active contingent: Properties which are available for showing but are under contract with another buyer

Pending: Properties which are under contract with a buyer and are no longer available for showings

Sold: Properties on which the sale has closed.

Coming soon: Properties which will be on the market soon and are not available for showings.

Contingent and Pending statuses may not be available for all listings

Betty Cole