The 15-Year Slipped Under 6% -- What That Means for Houston Buyers (Aug 19)

Mortgage rates drifted down again in Freddie Mac's latest weekly survey. As of August 13, the 30-year fixed averaged 6.67%, down from 6.69%, and the 15-year fixed averaged 5.96%, down from 6.01% — its first reading under 6% in several weeks. A year ago those averages were 6.58% and 5.71%.

The line worth noticing wasn't the rate itself. Freddie Mac's chief economist called rates relatively stable and pointed out that both purchase and refinance applications have picked up. Translation: buyers who were parked on the sidelines are responding to small moves, not waiting for a dramatic one. If you're still waiting for a headline number, other people in your price range have already gone back to shopping.

The 15-year dipping under 6% raises a question I get a lot in Houston, so let's put numbers on it. On a $350,000 loan, the 30-year at 6.67% runs about $2,252 a month in principal and interest. The same loan on a 15-year at 5.96% runs about $2,946 — roughly $694 more each month. That's a real stretch for most household budgets. But over the life of the loan, the 15-year costs about $180,000 in interest versus about $461,000 on the 30-year. For a move-up buyer bringing strong equity from a sale, that trade can be worth running. For a first-time buyer trying to get in the door, the 30-year almost always wins on flexibility — and you can always pay extra toward principal in the months you can afford it.

Standard caveat, and I mean it: those are national averages for borrowers with strong credit and 20% down. I'm a real estate broker and REALTOR®, not a lender. Your credit, loan type, down payment, and lender all move the number, so get a real quote before you plan around any of this.

What I'd actually do with this week's news: get pre-approved now while rates are drifting rather than spiking, and build your budget on the all-in monthly payment with Texas property taxes and insurance included — because in Houston, escrow is the part that surprises people, not the rate.

If you're weighing a move anywhere in the Houston area, I'm glad to talk it through with no obligation. Reach me, Kevan Pewitt, at Houston Prime Realty — call or text (281) 500-7077.

Read more on the Houston Prime Realty blog

• Pre-Qualification vs. Pre-Approval: What's the Difference? — Get the verified letter Houston sellers actually trust before you shop.
• What Is a Mortgage Pre-Approval Letter? — The first real step to buying, and what lenders check.
• How Much Down Payment Do You Really Need to Buy in Houston? — The real 2026 minimums for FHA, VA, USDA, and conventional loans.
• How Texas Property Taxes Affect Your Monthly Mortgage Payment — Why your Houston payment runs higher than the rate alone suggests.
• Closing Costs in Texas: Who Pays What? — Budget the 2-5% beyond your down payment so nothing surprises you at the table.