📍 Houston Mortgage Rates Today (July 28, 2025)
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30‑year fixed-rate mortgage: ~6.83%–6.89% APR in Houston and statewide Texas marketsHAR.comwellsfargo.com+2Bankrate+2NerdWallet+2
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15‑year fixed-rate: ~5.90%–5.95% APR Ramsey Solutions+5NerdWallet+5SoFi+5
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Average U.S. 30‑year rate: ~6.74%, down just slightly from recent weeks AP News+1Freddie Mac+1
Locally, Houston rates hover near national averages—typically between 6.71% and 6.83% for 30‑year fixed mortgagestexasunitedmortgage.comBankrate.
Why Consider Buying Now Rather Than Waiting
1. High interest rates are likely to persist
Experts expect rates in the 6–7% range to remain for much of 2025, with only modest declines possible by year’s end. Even then, projected rates around 6.2% (Fannie Mae forecast) don’t guarantee affordability improvements soon AP Newsft.comRedfinRamsey Solutions. Waiting may cost you in the meantime.
2. Home prices are still elevated and may rise further
Despite slowing sales, median U.S. home prices hit a record $435,300 in June 2025—up 2% year over year. In Houston and Texas metros, prices have remained strong with increasing competition and limited supply.
3. Locked‑in rates deter sellers and limit inventory
Homeowners with mortgage rates below 5% tend not to trade up, shrinking available inventory and boosting prices. Even if rates drop, new supply may lag demand investopedia.com.
4. Waiting can reduce leverage—even with refinancing later
If rates decline modestly (e.g. to 6–6.2%), homebuyers could refinance later. But if prices have increased in the meantime, or sellers face multiple competing offers, those gains may be offset by higher purchase costs.
5. Current market gives buyers negotiating power
High rates have sidelined many buyers, leading to longer list times and more room to negotiate—especially in Houston, where some sellers have reduced prices. Investors are now active buyers too, but serious purchasers still benefit from better deal terms.
Quick Comparison
| Factor | Buying Now (Today) | Waiting (Late 2025 / 2026) |
|---|---|---|
| Rates | ~6.8% for 30‑year fixed | Possibly ~6.2%, but uncertain |
| Home prices | Near current highs | Likely up further in demand-driven market |
| Inventory | Moderate; negotiable supply & terms | May increase slowly; competition returns |
| Refinance option | Available if rates fall later | Might cost more if price inflation eats gains |
Actionable Tips for Houston Buyers
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Get pre-approved and lock in a rate (typically for ~90 days) to protect from short‑term spikes.
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Compare lenders for rate differences and fees—shopping around can save thousands.
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Consider a 15‑year fixed or ARM if you plan to move or refinance within 5 years. ARMs may offer lower initial rates, though long‑term risk exists.
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Improve your financial profile: higher credit and larger down payments may secure lower APRs. SoFi
🏠 Final Thought
If you’re financially prepared and planning to stay in your home beyond a few years, buying now locks in a home at today’s prices and acceptable interest rates—even if the rates edge slightly lower later, you can refinance. Waiting could expose you to higher prices, reduced negotiation leverage, and uncertainty about economic shifts.
