Mortgage & Finance

After climbing in 2022 and 2023, mortgage rates have settled down. The 30-year fixed rate averages about 6.1% – about the lowest level in over three years. A year ago, rates were around 6.5–7%, so this drop translates into real savings. In fact, HAR reports that affordability improved in 10 out of 12 months in 2025 compared to 2024. By December, the typical buyer’s monthly principal & interest payment was about $88 lower than it would have been a year earlier.

For buyers, these calmer rates mean breathing room in your budget. After years of rate volatility, getting a 30-year loan at ~6% feels almost normal. Lower rates have lured many buyers back – we saw Houston home sales pick up as financing became more attainable. With the Fed hitting pause on rate hikes, there’s hope that mortgage rates will stay reasonable or even dip as 2026 unfolds.

Current homeowners are also taking advantage. We’re seeing more refinance inquiries than we did when rates peaked above 7%. If you bought when rates were higher, it could be a smart time to check if a refi at ~6% might lower your monthly payment. And if you’re considering selling and buying another home, the math is friendlier now: you may be able to afford that move-up home with today’s rate without blowing up your budget.

Overall, the current financial climate is fostering a healthier housing market. At ~6%, mortgage rates are not the historic lows of 3%, but they’re far below the highs that scared so many off. Combined with Houston’s stable home prices, these moderate rates are keeping the dream of homeownership within reach for many. So if high interest rates were the only thing holding you back, it may be time to re-run your numbers – buying a home is a bit more affordable today.

Resources
HAR Weekly Activity Snapshot (latest week) HAR Monthly Market Update Freddie Mac Mortgage Survey (latest)

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