TYLER, Texas (KLTV) – The average long-term U.S. mortgage rate climbed for a third straight week, reaching its highest level in nearly 12 months and pushing up borrowing costs for prospective homebuyers.<\/p>\n
Mortgage buyer Freddie Mac reported Thursday that the benchmark 30-year fixed mortgage rate rose to 6.58%, up from 6.55% last week. One year ago, the average rate was 6.74%.<\/p>\n
Nationally, higher mortgage rates can add hundreds of dollars a month in costs for borrowers, limiting purchasing power and contributing to sluggish home sales. But local real estate professionals in East Texas say the \u201cnearly 12-month high\u201d label can sound more alarming than it is \u2014 and that buyers still have options.<\/p>\n
\u201cWhen in doubt, zoom out\u201d<\/p>\n
CMG Home Loans lender Amber Bowlden said the \u201c12-month high\u201d phrase may trigger unnecessary panic.<\/p>\n
\u201cThe 12-month high thing is kind of scary to a lot of people,\u201d Bowlden said. \u201cWe all saw it on the news\u2026 and of course, it causes a little bit of panic.\u201d<\/p>\n
Bowlden emphasized that mortgage rates have moved higher than today\u2019s level in recent years.<\/p>\n
\u201cWhat people don\u2019t think about is actually rates were even higher August of 2025,\u201d she said. \u201cAnd then before that, October 2022, they\u2019re even higher.\u201d<\/p>\n
Life changes don\u2019t stop \u2014 the market shifts<\/p>\n
Even with higher borrowing costs, Bowlden said real life continues to drive housing decisions.<\/p>\n
\u201cLife changes still happen,\u201d she said. \u201cPeople still buy houses because they\u2019re getting married. They\u2019re having children. They\u2019re getting divorced. They\u2019re downsizing\u2026 Whatever the situation is, people continue to still move.\u201d<\/p>\n
Instead of seeing a total freeze, she said the market adjusts.<\/p>\n
\u201cWe\u2019re not seeing a stop in the market, but it changes,\u201d Bowlden said.<\/p>\n
Budget math and negotiation<\/p>\n
Nolan Properties Realtor Christian Gonzalez said one of the biggest changes he sees is what buyers can afford as rates shift.<\/p>\n
\u201cBuyers definitely have to reduce their budget whenever rates go up,\u201d Gonzalez said. \u201cAnd that\u2019s just the simple math of it.\u201d<\/p>\n
Gonzalez said that can translate into more careful shopping and, in some cases, more negotiation.<\/p>\n
\u201cSellers are really encouraged to price their home accurately the first time,\u201d he said. \u201cYou don\u2019t want to overprice your home\u2026 because a higher priced home will scare away your buyers.\u201d<\/p>\n
He also said some buyers try to offset higher payments by combining lender programs with negotiated concessions.<\/p>\n
\u201cSometimes buyers will couple these lender incentives with asking for seller concession incentives,\u201d Gonzalez said, \u201cto overall just make their home buying experience as easy as possible with the economy that we have.\u201d<\/p>\n
Smith County\u2019s median home price in Q2 2026 was $310,000, according to The Greater Tyler Association of Realtors.<\/p>\n
Payment \u2014 not just rate \u2014 is what buyers live with<\/p>\n
Bowlden said her conversations with clients often shift away from the interest rate and toward the number that hits their bank account each month.<\/p>\n
\u201cOur shift kind of focuses from interest rate to more payment,\u201d she said. \u201cEach month, the client doesn\u2019t say, \u2018let me pay my 6.5% mortgage.\u2019 They\u2019re saying, \u2018let me pay whatever this dollar amount is.\u2019\u201d<\/p>\n
Refinancing later is common<\/p>\n
Bowlden said many borrowers won\u2019t keep the same loan for the full time they own the home.<\/p>\n
\u201cStatistically, you\u2019re going to keep that home seven to ten years,\u201d she said. \u201cYou may not keep that loan for that long.\u201d<\/p>\n
If rates drop in the future, she said refinancing activity tends to return.<\/p>\n
\u201cWe saw it when rates dropped. We had so many refinances going into the market,\u201d Bowlden said. \u201cAnd eventually, if the market changes, it\u2019ll happen again.\u201d<\/p>\n
A reminder about escrow: taxes and insurance can change payments<\/p>\n
Bowlden also urged homeowners \u2014 and buyers \u2014 to remember that a monthly mortgage payment can rise even with a fixed interest rate if escrow costs increase.<\/p>\n
\u201cWe get calls around this time of year saying, \u2018my payment doubled,\u2019\u201d she said. \u201cAnd it\u2019s not the principal or interest that\u2019s changed. It\u2019s those escrow payments.\u201d<\/p>\n
She recommended Texas homeowners file for a homestead exemption when eligible.<\/p>\n
\u201cAnytime you\u2019re buying a primary residence in Texas, you do get a homestead exemption,\u201d Bowlden said. \u201cThat helps lower your property taxes.\u201d<\/p>\n
What local experts recommend<\/p>\n
Both Bowlden and Gonzalez said shoppers should focus on affordability and the full monthly payment.<\/p>\n
Gonzalez added that waiting for a \u201cperfect\u201d moment can keep would-be buyers on the sidelines indefinitely.<\/p>\n
\u201cIf you want to buy a home and you need to buy a home, the time is never going to be perfect,\u201d Gonzalez said.<\/p>\n
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