Understanding interest rates in Texas

Current Mortgage Rate Environment

Mortgage rates in late 2025 have eased slightly from earlier highs but remain above historical averages. The average U.S. 30-year fixed mortgage rate is around 6.2%, close to recent year-to-date lows. Historically these are "normal" rates between 6-7%, though still notably higher than rates between 2021 and 2023. AP News

In Texas, typical 30-year fixed rates are similar, generally in the low to mid-6% range, with 15-year and adjustable-rate options somewhat lower. LocalCalc

Impact on Buyers

Yes, higher rates increase monthly payments compared with the unrealistically very low rates of a few years ago. For example, a mortgage at roughly 6.5–7% costs significantly more per month than a mortgage at 3–4%, all else equal. What has caused more issues is the rapid rise in prices in those few years. Prices in some neighborhoods came down or did not increase, helping affordability for many buyers. LendFriend

Rate Strategy Tips

• Getting pre-approved helps understand your precise budget range.

• Consider comparing fixed and adjustable rates, especially if you plan to move or refinance within a few years.

• Monitor rate trends before locking your loan, but avoid over-timing the market.

Conclusion

Home prices and rates remain a key factor in affordability. While rates are not at historic lows, you can expect 6-7% for the foreseeable future. However rates should not be the only deciding factor for your home purchase. Don't forget that $350,000 home will most likely increase in price to $370,000 by next year. That is almost $1500 a month of appreciation $$$ you are currently NOT putting in YOUR pocket.