Rates Held Flat This Week. The Market Around Them Didn't. (Aug 28)

Mortgage rates barely moved this week. Freddie Mac's August 27 survey put the 30-year fixed at 6.66%, up a hair from 6.65%, and the 15-year at 5.98%, up from 5.95%. A year ago those averages were 6.56% and 5.69%. After two weeks of small declines, this was essentially a flat week.

So the headline number isn't the story. What caught my eye was where Freddie Mac's chief economist, Sam Khater, spent his sentence — not on the rate, but on the market around it. He pointed to more homes coming up for sale and slower price growth in many areas, and called it a more balanced housing market. For a buyer who has been waiting, that shift matters more than a tenth of a point on the rate.

Here's why. When you wait for a lower rate, two things usually move against you while you sit: prices climb, and the moment rates drop, every other sidelined buyer jumps back in and competition heats up. A more balanced market softens both. More listings mean more choice and less pressure to overbid; slower price growth means the house you're eyeing isn't running away from you week to week.

Put the rate in perspective while we're here. A $350,000 loan at this week's 6.66% runs about $2,249 a month in principal and interest. A buyer who locked that same loan a year ago at 6.56% pays about $2,226 — so a full year of waiting moved the payment about $23 a month. Real money, but rarely the thing that should make or break a 30-year decision when choice and negotiating room are improving now.

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, so your credit, loan type, and down payment all move the number — get a real quote before you plan around it.

My honest advice this week is to stop watching the rate and start getting ready. Get pre-approved, set your budget on the all-in monthly payment with Texas property taxes and insurance folded in, and be in position to move when the right house and a rate you're comfortable with line up. In a more balanced market, prepared buyers win.

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.