Should You Buy Your First Home Now or Wait for Lower Rates in Texas? A Straight Answer

If you’re renting in Texas and watching mortgage rates hover around 7%, it’s fair to wonder whether buying now makes sense, or whether waiting could save you money.

Here’s the straight answer: Don’t buy a home you can’t comfortably afford. But don’t wait for a lower rate just because you hope one is coming. Rates can move either way, and waiting may mean missing today’s negotiating opportunities.

As of October 8, Freddie Mac’s national 30-year fixed-rate average was 7.40%, following seven consecutive weekly increases. On October 13, Mortgage News Daily reported rates around 7.46%. These are market benchmarks, not a personalized Texas loan quote. Your rate depends on factors like your credit profile, down payment, loan type, property, and lender.

The right next step isn’t guessing. It’s getting clear on your payment, your options, and what a home would cost you today.

What does today’s Texas market mean for first-time buyers?

In many parts of Texas, buyers have more room to negotiate than they did in a highly competitive market. Inventory has been rising, homes are taking longer to sell, and price cuts and seller concessions are more common. Austin and San Antonio have seen notable price corrections. In Dallas–Fort Worth, the median is around $390,000 and roughly flat year over year. Houston remains under pressure, with a modest rebound.

Conditions vary by neighborhood and property. But in a buyer-friendly market, you may be able to ask for:

• Help with eligible closing costs

• A temporary or permanent rate buydown

• A price adjustment

• Repairs or other terms that make the purchase work better for you

The Freddie Mac weekly rate survey is useful context, but it can’t tell you what a specific home and loan will cost. Ask for a written quote and compare the full terms.

Should you buy now, or wait?

Buying now can make sense if the home fits your budget, you have a plan for upfront costs, and you expect to stay long enough for the purchase to work for you. Waiting can make sense if today’s payment feels tight, you need to build savings, or your work or housing plans may change soon.

Think about the cost of waiting, too. You’ll keep paying rent, and you may have fewer concessions or more competition if the market shifts. But future prices and rates are uncertain. No one can promise that waiting will make your next home cheaper, or that you’ll be able to refinance later at a lower rate.

A refinance may be an option if rates fall and you qualify at that time. It isn’t guaranteed, so your purchase should work at the rate and payment you can get now.

Good question: How much house can you afford? Start with the whole monthly cost, not just the principal and interest. Include property taxes, homeowners insurance, mortgage insurance, HOA fees, utilities, and a reserve for repairs. Texas property taxes and insurance can make a real difference to the total.

How does pre-approval help you know your number?

Pre-approval gives you a clearer view of your potential loan options, estimated payment, and cash needed to close. It also helps you set a realistic home-search range before you fall in love with a house that stretches your budget.

A pre-approval is not a final loan approval. Your lender still needs to verify your income, assets, debts, credit, and the property. But a careful review early on can help surface questions before you’re under contract.

At Home Loans by Markus, we can compare home purchase loans through a network of 100+ wholesale lenders, with no extra lender overlays of our own. That can be useful if you’re weighing conventional and FHA financing or want a second opinion on a quote. We’ll explain the tradeoffs in plain language.

One timely credit-score note: as of October 1, 2026, conventional lenders may use Classic FICO or VantageScore 4.0, with pricing aligned across the two models. For FHA, VantageScore 4.0 and FICO 10T are scheduled to be accepted for case numbers assigned on or after January 1, 2027. Ask which model your lender uses; a score shown by a consumer app may not be the score used for a mortgage decision.

Could Texas down payment assistance help?

Possibly. The Texas State Affordable Housing Corporation (TSAHC) offers eligible buyers down payment assistance through programs such as Home Sweet Texas and Homes for Texas Heroes. Assistance can be structured as a grant or a second lien, depending on the program and your circumstances.

The Texas Department of Housing and Community Affairs (TDHCA) also offers eligible first-time buyers assistance through My First Texas Home. Some current bond-program options use a 30-year deferred repayable second lien. “Deferred” generally means payments aren’t due monthly, but the loan may become due when you sell, refinance, transfer, or pay off the first mortgage. Exact terms matter.

Assistance can reduce the cash you need upfront, but it doesn’t automatically mean the lowest total cost. The first-mortgage rate, repayment conditions, eligibility rules, and your plans for the home can all affect whether a program is a good fit.

Ask for a side-by-side comparison: one option with assistance and one without. Compare the rate, monthly payment, cash to close, and any second-lien obligations.

What low-down-payment options should you compare?

Some first-time buyers assume they need 20% down. That isn’t always true. Depending on your eligibility, a conventional or FHA loan may allow a lower down payment. VA and USDA loans may offer other options for qualified borrowers and eligible properties.

A lower down payment can help you buy sooner, but it may mean mortgage insurance or a larger loan balance. The right comparison is not just “How little can I put down?” It’s “What payment and total cost can I live with?”

There’s another common myth: a first-time buyer loan is automatically the best deal. Program names can sound reassuring, but the actual rate, fees, assistance terms, and eligibility rules still deserve a close look. Ask for the numbers, not just the label.

Can seller concessions or a rate buydown ease the payment?

They may help. In some Texas transactions, a seller may agree to contribute toward eligible closing costs or a rate buydown. A temporary buydown can reduce payments for an initial period; it does not necessarily change the note rate for the full loan term. A permanent buydown generally involves paying points to lower the rate.

What’s available depends on the contract, loan type, and program limits. Ask your lender to show how a concession changes your cash to close and your payment over time. For a temporary buydown, make sure you understand the payment after the reduced-payment period ends.

A seller credit can be valuable, but don’t accept a higher price or worse loan terms without comparing the complete offer.

How can you make the decision with more certainty?

Start with a pre-approval and a payment range that leaves room for everyday life. Then compare loan options, assistance programs, and seller concessions before you commit. If the payment only works under optimistic assumptions, waiting and strengthening your finances may be the wiser move.

I don’t offer a guess about where rates will go. I offer a clear comparison of what you can do now, what the tradeoffs are, and what questions to ask before you sign.

Our team brings 30 years of combined real estate broker and mortgage broker experience. We have a 96% approval rate, a 98% on-time closing record, and a 12-day clear to close. You can expect:

• Calls returned in under 60 minutes

• Tuesday and Thursday transaction updates

• Availability from 8 AM to 8 PM, 365 days a year

• A personal review of your options, not a rushed handoff

No pressure. Let’s look at the numbers and see what fits. Book a free mortgage consultation, or visit Home Loans by Markus to learn more.