Mortgage Rates & Buying Power: Early October Snapshot

What’s happening and why it matters

The drop in average mortgage rates this fall has meaningfully reduced monthly payments. HAR reports that the principal-and-interest payment on a median-priced Houston home is now around $1,627 per month—$143 less than May and $82 less than August. Lower rates combined with a slight dip in median prices make homeownership more attainable. Meanwhile, credit-challenged buyers aren’t shut out: TL Global’s third-party owner-financing program lets clients purchase any single-family property without relying on a traditional mortgage or credit score.

• Buyers: Get pre-approved soon and lock in a rate while they’re still below this year’s highs. Compare loan products—including FHA, VA or adjustable-rate mortgages—and explore alternative financing if your income or credit doesn’t fit traditional guidelines. A lower payment means you may qualify for a higher price point or keep more cash for upgrades.

• Sellers: Lower rates expand the buyer pool. Highlight energy-efficient features or offer to buy down the buyer’s rate for the first year. With mid-range inventory slightly softer, creative incentives can seal the deal.

• Investors: Cheaper borrowing costs improve cash flow for rental properties. Run the numbers with today’s rates and consider using owner financing to acquire properties without tying up bank capital.

By following these simple tips, you'll feel more confident about buying your first home.

Want to get started on your home-buying or selling journey? Text HOME to 832-639-4884 or click HERE to begin!

Resources

• HAR mortgage payment estimate – Declining payments on the median-priced home

• Alternative financing overview – TL Global’s program for buyers without traditional credit or income verification.

• Segment trends – Mid-range segment softness and luxury segment strength