Buying a home in Texas right now? You’re probably hearing all kinds of things about mortgage rates,Current mortgage trends in Texas housing demand, and what the market’s doing next. The Texas mortgage market trends are shifting, and if you’re not paying attention, you could miss out on some big opportunities—or walk into a financial decision that doesn’t work in your favor.
The truth is, mortgage rates aren’t what they were a couple of years ago. They’re moving, adjusting, sometimes stubborn, and absolutely impacting homebuyers across the state. Whether you’re locking in your first home or adding to your real estate portfolio, here’s what’s happening right now with Texas mortgage market trends.
Mortgage Rates in 2024: Where Do They Stand?
Mortgage rates in Texas remained elevated throughout 2024. Average 30-year fixed rates hovered between 6.5% and 7.2%, depending on borrower credit scores and lender policies. While some predicted a significant decline, the reality was more moderate.
- Current rates: 30-year fixed mortgage rates in Texas hover between 6.5% to 7.2%, depending on credit score and lender.
- Texas snapshot: Bankrate listed Texas-specific 30-year rates at 6.62% by mid-2025.
- Expert outlook: Most economists expect rates to slowly trend downward, possibly reaching 6.3%-6.5% by year-end.
While rates are still far from the sub-3% lows of 2020, they remain relatively stable for those looking to lock in financing.
Will Mortgage Rates Drop in 2024?
The question on every homebuyer’s mind is whether mortgage rates will go down. In 2024, rates experienced slight dips but didn’t see a dramatic drop.
- Slow descent expected: Forecasts from Fannie Mae and other institutions point to gradual easing rather than a sharp fall.
- Market response: Buyers adapted, adjusting expectations and timing their purchases to avoid future rate hikes.
Locking in a mortgage now can still be a smart move—especially with the option to refinance later if rates improve.
Texas Housing Market Conditions & Pricing
The Texas housing market showed signs of stabilization in 2024, with some cities adjusting faster than others.
- Median home prices: Held steady around $340,000 statewide.
- Regional shifts:
- Austin: Experienced price declines of about 5%, after years of explosive growth.
- Dallas: Prices stayed firm due to consistent demand.
- Houston: Saw mixed trends, with some suburbs softening.
Buyers benefited from growing inventory and longer listing periods, which created more negotiation power.
Inventory and Buyer Behavior Trends
- Inventory growth: Listings increased ~30% year-over-year, giving buyers more choice.
- Investor activity: Approximately 30% of single-family purchases came from investors, influencing demand in many markets.
- Urban vs. rural: While major metros remained competitive, smaller towns and rural areas offered more favorable conditions for buyers.
Loan Programs Available to Texas Buyers
To help offset higher rates, buyers in Texas can tap into a variety of state-supported loan programs:
- Texas FHA Loans: Lower down payments, great for first-time buyer
- VA Loans: Offer zero-down options for eligible veterans and service members.
- Texas Conventional Loans: Ideal for buyers with strong credit looking for better interest rates.
- First-Time Homebuyer Programs: Extra assistance for buyers struggling with down payments.
Should You Buy Now or Wait?
It depends on your financial readiness and goals:
- Buy now if you find a home you love and can afford current rates.
- Wait only if you’re betting on lower rates—but be prepared for more competition when that happens.
- Refinancing later remains a viable option as rates slowly trend downward.
The Texas mortgage market trends are constantly shifting, but smart buyers are staying ahead.
FAQs
Will Texas mortgage rates go down in 2024?
A modest decline is expected, with rates likely remaining between 6.5%-7% through the year.
How much do I need for a down payment?
Depends on the loan type. Conventional loans typically require 3-20%, FHA loans need at least 3.5%, and VA loans may not need a down payment at all.
Is Texas real estate still a good investment?
Yes. Strong job growth and long-term housing demand continue to support the state’s market fundamentals.
Conclusion
In 2024, Texas mortgage and housing trends leaned toward balance: stable rates, moderating prices, and increased inventory. Whether you’re a first-time buyer or a seasoned investor, understanding these shifts puts you in a better position to navigate your next move.
Stay informed. Make strategic decisions. And remember—today’s mortgage rate may be tomorrow’s opportunity to refinance.