The average rate on a 30-year fixed mortgage rose 8 points to 7.03% from last week’s 6.95%- the highest since January 2025. Houston Association of Realtors, Theresa Hill, says the increase will affect the bottom line, but if you’re looking in Houston- you’re in luck. “Higher mortgage rates are creating an affordability hurdle for home buyers, but Houston is in a better position than other markets in the U.S. because our home prices have remained relatively stable and our inventory has remained stable is well- which means buyers have more to choose from.” She explained.
On the other side, sellers must consider higher borrowing costs with a shrinking pool of prospective buyers. “If they’re wanting to sell in a relatively good time frame- they need to be realistic about their pricing from the get-go.” Hill said.
Buyers need to zero in on their budget and get on board with a good lender to evaluate fluctuating rates.
Hill says the median price of a home is down 5K from last year averaging between $330 and $334K, with 5.3 months of inventory- showing a balanced market.