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Mortgage rates climbed for a second week. Freddie Mac's September 3 survey put the 30-year fixed at 6.71%, up from 6.66%, and the 15-year at 6.04%, up from 5.98%. The line that will get the headlines is this one: a year ago, those averages were 6.50% and 5.60%. For the first time in a while, both rates are running above their year-ago readings.
I know how that lands if you've been waiting. It feels like the window closed. So let me put an actual number on what a year on the sidelines cost, because the number is usually smaller than the feeling.
A $350,000 loan at this week's 6.71% runs about $2,261 a month in principal and interest. The same loan locked a year ago at 6.50% runs about $2,212. The gap is roughly $49 a month. Real money, and I won't wave it away. But it's a dinner out, not a different house. It is not the thing that should decide a 30-year commitment on its own.
What should? The price you pay for the home and the terms you're able to negotiate, because those are locked in for good. The rate is not. If rates fall meaningfully after you buy, you can refinance into the lower one. The purchase price and the concessions you won at the table stay yours either way.
There's a useful detail buried in this week's report, too. Freddie Mac's chief economist, Sam Khater, noted that purchase demand has stayed relatively stable, which tells me buyers are adapting rather than bolting. In Houston, that has looked like more listings to choose from and sellers who are more willing to talk about price, repairs, and closing help than they were two years ago. That negotiating room is worth more than $49 a month.
Standard caveat, and I mean it: these 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 advice this week is the same as when rates dipped: get ready, not anxious. Get pre-approved, build your budget on the all-in monthly payment with Texas property taxes and insurance folded in, and shop the lender as carefully as you shop the house. The spread between two lenders' quotes on the same day is often bigger than this week's move.
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.
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