Mortgage rates in Texas
Quick insights
- Your mortgage interest rate plays a major role in shaping your monthly payments and the total cost of your home over time.
- In Texas, rates can vary based on factors like your credit profile, the loan type you choose, local housing trends and broader national economic conditions.
- Because rates shift frequently, staying up to date is a good idea—whether you’re house-hunting in a fast-growing city like Austin or looking for space and quiet areas like Waco or the Hill Country.
Texas offers a wide variety of housing—from sleek condos in downtown Dallas to ranch-style homes near San Antonio and waterfront properties along the Gulf Coast. This diversity means mortgage rates can differ based on the region, property type and market competition. Local inventory, buyer demand and neighborhood pricing trends all influence what rate a loan provider might offer.
In this article, we’ll break down how mortgage rates work in Texas, what factors affect them and how you can find and compare current rates with confidence.
How to find mortgage rates in Texas
Finding a competitive mortgage rate in Texas means doing more than just a quick search on the web. Given the size and regional variety of the Lone Star State, rates can differ significantly between urban hubs, suburbs and rural areas. Here’s how to start your search:
- Search by zip code: Use a mortgage rate tool to see offers tailored to your area such as Plano, Lubbock or Corpus Christi. Local mortgage lenders may offer different rates than national providers.
- Monitor rates regularly: Texas markets can change quickly. Our mortgage rate tables update Monday through Friday so you can keep an eye on fluctuations.
- Look into refinancing: Already own a home in Texas? Whether you’re refinancing a starter home in Denton or your dream home in Fredericksburg, compare purchase and refinance rates because they’re typically different. Visit our mortgage refinance rates page to explore options that may lower your monthly payments or shorten your loan term.
- Talk to a Home Lending Advisor: A Texas-based Home Lending Advisor knows the ins and outs of regional markets and can help you understand your options, from FHA loans to jumbo loans in pricey neighborhoods like Westlake or Highland Park.
- Get prequalified or preapproved: Starting the mortgage prequalification or preapproval process can give you insight into what rate range you may qualify for, and can help you plan your home search with more confidence.
U.S. mortgage rate trends
Current 30-year mortgage rates have generally ranged been between 5% and 10%. Meanwhile, annual averages of 30-year fixed-rate mortgage rates have seen more ups and downs since 1971:
- 1974: 9.19%
- 1982: 16.04%
- 1990: 10.13%
- 1998: 6.94%
- 2006: 6.41%
- 2014: 4.17%
- 2020: 3.11%
- 2024: 6.72%
Factors affecting mortgage rates in Texas
Landing a competitive mortgage rate in Texas takes more than luck—it starts with knowing what to look for and where to look. With housing markets that vary from metro to metro and even neighborhood to neighborhood, conducting a little bit of research can go a long way. There are many factors that drive mortgages rates, and all are subject to change over time. Understanding how personal financial factors and the broader economic climate will affect the rates you see can help you make your best decisions.
What can affect your mortgage rate in Texas?
Mortgage rates in Texas are influenced by both national trends and your personal financial profile. While economic conditions set the backdrop, your personal circumstances often carry the most weight. From cities like Austin and Houston to markets like Waco or Lubbock, here are some of the key factors loan providers evaluate:
- Credit profile: A solid credit score and a strong record of on-time payments show you’re a responsible borrower, which may lead to more favorable rates.
- Income: Mortgage lenders generally want to see a stable income stream. Whether you’re in oil and gas in Midland or healthcare in San Antonio, full-time, salaried positions may be seen as lower-risk than freelance or commission-based work. If you’re self-employed or gig-based, you may need to show extra documentation or a longer income history.
- Debt-to-income (DTI) ratio: A lower debt-to-income (DTI) ratio typically makes you a more favorable candidate for lenders and may improve your eligibility for more competitive interest rates.
- Financial reserves: Savings, emergency funds and investment accounts can all reassure loan providers that you’re prepared to handle life’s curveballs without missing payments.
- Down payment size: A larger down payment means you’re financing less of the home, which may help reduce lender risk. That may lead to a better rate and help you avoid private mortgage insurance (PMI).
- Additional factors: Location, property type and how you plan to use the home (primary residence, vacation property or rental) can all influence your mortgage rate. Some areas in Texas may also see rate differences based on local housing competition and inventory.
How the economy influences mortgage rates in Texas
Mortgage rates in Texas are largely shaped by national economic forces. When key economic indicators like inflation, employment rates or consumer confidence shift, mortgage lenders often adjust their rates accordingly. One of the biggest influences is the U.S. Federal Reserve (commonly referred to as “the Fed”).
When the Fed raises or lowers the federal funds rate (the interest rate banks use when lending to each other), loan providers typically follow by adjusting mortgage rates. These shifts ripple down to homebuyers across Texas—from fast-growing cities like Austin and Houston to smaller towns throughout the Hill Country and beyond.
Mortgage rates by loan type in Texas
The mortgage product you choose plays a major role in determining your interest rate and overall cost of borrowing. Homebuyers across Texas may have access to several common loan types, each with its own structure, benefits and trade-offs:
- Fixed-rate mortgages: These offer steady interest rates for the full loan term (typically 15, 20 or 30 years). This predictability is useful for homebuyers who value stability in long-term planning.
- Adjustable-rate mortgages (ARMs): ARMs start with a lower fixed rate for an initial period (such as 5,7 or 10 years) and then adjust based on market conditions. These can be attractive if you plan to move, sell or refinance before the rate resets.
- Federal Housing Administration (FHA) loans: FHA loans, which are insured by the government, are available to first-time homebuyers and individuals with limited savings or credit challenges. They may feature lower rates and down payment requirements, making them popular for borrowers looking for affordable housing options.
- Veterans Affairs (VA) loans: Available to eligible veterans, active-duty service members and some surviving spouses, VA loans typically offer competitive rates, no down payment and no private mortgage insurance (PMI). These can be especially valuable in cities with large military communities like Killeen or San Antonio.
- Jumbo loans: If you’re purchasing a high-value home in Texas—especially in luxury markets like parts of Austin, Dallas or The Woodlands, you may need a jumbo loan. These loans exceed conforming loan limits and often come with more rigorous credit requirements and slightly higher interest rates due to the increased lending risk.
How rates affect affordability in Texas
Your mortgage rate has a direct impact on how much home you can afford. Even a small rate change can shift your monthly payments and overall budget. Lower rates typically mean lower monthly costs and more long-term savings, while higher rates can limit your purchasing power.
To get a better idea of how today’s rates fit your financial goals, use a mortgage affordability calculator or speak with a Texas-based Home Lending Advisor who understands the local market.
In summary
Buying a home in Dallas or refinancing in San Antonio? Connecting with a Texas-based Home Lending Advisor can offer the local insight and personalized support you need. From understanding mortgage rates to exploring the right loan for your budget, a knowledgeable advisor can help you create a plan that aligns with your goals.
With the right guidance and a path forward, you’ll be ready to take the next big step in your Texas homeownership journey, on your terms and with confidence.
