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The 30-year fixed crossed 7% this week. Freddie Mac's September 24 survey put it at 7.03%, up from 6.95% a week earlier, and the 15-year at 6.42%, up from 6.26%. A year ago those averages were 6.30% and 5.49%. That's five straight weekly increases, and the first time in this run the headline has started with a seven.
I know what a 7-handle does to buyers. It feels like a line. People who toured homes on Saturday tell me on Monday they're going to "wait and see." So let me put the line in dollars.
On a $350,000 loan, this week's move from 6.95% to 7.03% adds about $19 a month in principal and interest, roughly $2,336 now versus $2,317 last week. Compared with a year ago at 6.30%, it's about $170 a month more. Real money, and I won't pretend otherwise. But the difference between 6.95% and 7.03% is a tank of gas, not a reason to reset your whole plan.
Here's the part I think matters more. Freddie Mac's chief economist credited the move to a solid labor market and an economy growing at a healthy clip. Good economic news pushes bond yields up, and mortgage rates follow. That means the scenario where rates drop fast is usually one where hiring slows and the economy wobbles. If you're waiting for that, you're waiting for a moment when your own job and confidence might feel shakier too. I'd rather you buy from a position of strength at 7% than from a position of worry at 6.25%.
So instead of watching the rate, decide your number. What monthly payment, all in, lets you sleep at night? Taxes and insurance in Houston add real weight to that figure, so build it with a lender and with someone who knows what homes in your target neighborhoods actually cost to carry. With that ceiling set, a rate move becomes a math adjustment to your price range, not a stop sign.
The usual 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. Your credit, loan type, and down payment all move the number, so get a real quote before you plan around it.
And if 7% still stings, remember two tools that don't depend on the market: a seller credit toward a rate buydown, and the refinance you can do later if rates ease. The house you buy at today's price is the part you can't redo.
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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