Where Mortgage Rates
Where Mortgage Rates.
Mortgage rates in Texas have edged lower compared with a year ago, while home prices are cooling and inventory is up, creating a more buyer-friendly and balanced market across much of the state. Sellers can still win with the right pricing and presentation, but the days of automatic bidding wars on every listing have faded in many areas.
Where Mortgage Rates Are Now in Texas
As of early December 2025, average 30‑year fixed mortgage rates in Texas are hovering around the low‑6 percent range, with some sources showing about 6.02–6.21 percent APR, while 15‑year fixed rates are in the mid‑5 percent range. These rates are several tenths of a percentage point lower than this time last year, giving buyers slightly more purchasing power than they had in late 2024.
Online rate trackers also note that today’s Texas 30‑year fixed rate is a few basis points lower than just one week ago, signaling a gentle downward trend rather than a spike. At the same time, national forecasts expect rates to gradually ease into 2026 rather than crash, which points toward a steadier, more predictable environment instead of extreme swings.
For buyers, even a small drop in rates can translate into lower monthly payments or the ability to afford a slightly higher price point. For sellers, softer rates can help bring more qualified buyers back into the market after the affordability squeeze of the last few years.
What Is Happening with Texas Home Prices?
Texas home prices have cooled from the rapid appreciation seen during the post‑pandemic boom, with recent data showing modest declines or flat pricing in several major metros and a more moderate statewide trend. Statewide analysis projects that Texas’s median home price will finish 2025 just above $350,000, reflecting slower growth instead of large jumps, while some cities like Austin, San Antonio, and parts of Houston are seeing year‑over‑year price drops as inventory builds.
Recent research notes that in markets such as Houston and other large Texas metros, active listings have climbed and homes are staying on the market longer, while median prices have slipped slightly from last year. In fact, one statewide report highlights a “reset button” effect: sales are holding up, but prices in many areas have stopped climbing aggressively and, in some segments, are trending down.
Put simply, prices are not collapsing, but sellers no longer hold the extreme advantage they did during the peak of the frenzy. Buyers now have more room to negotiate, more options to compare, and less pressure to waive protections just to win a home.
Is Texas a Buyer’s or Seller’s Market Right Now?
Most of Texas is moving toward a more balanced or buyer‑leaning market, especially in mid‑ and higher‑price ranges, although truly affordable starter homes still attract strong competition.
Several indicators point in this direction:
Inventory is up, and days on market have lengthened, giving buyers more choices and time.
A large share of homes now see price reductions, with recent figures showing more than a third of listings cutting their asking price before selling.
Analysts describe late‑2025 Texas conditions as a “buyer’s housing market” in many areas, with lower prices, high seller concessions, and buyers approaching more cautiously.
That said, the picture can differ by price band and neighborhood. Starter homes under roughly 250,000 dollars remain the strongest segment, where demand is highest, and buyers still need to move quickly for well‑priced listings. Mid‑tier homes, roughly 350,000 to 600,000 dollars, are seeing softer demand and more negotiation, reflecting stretched affordability and the effect of owners being “locked in” to older low rates.
So, overall: Texas is shifting away from a pure seller’s market and into a more balanced, often buyer‑tilted environment, with local conditions depending on price point and city.
What This Means for Buyers
For buyers, this combination of slightly lower rates, more inventory, and softer prices creates opportunity. Today’s average 30‑year rate in Texas is notably below last year’s level, and experts expect the broader market to lean more toward buyers into 2026 as supply and demand find firmer footing.
Key advantages for buyers in the current Texas market include:
More time to compare homes and avoid rushed decisions as days on market increase.
Greater room to negotiate price, repairs, and closing costs, with median seller concessions remaining elevated in many markets.
A chance to lock in a rate that is lower than last year, with the potential to refinance later if rates drift further down.
However, buyers should still budget carefully. Affordability is improving but remains a concern, especially for first‑time buyers and those targeting rapidly growing metros. Getting pre‑approved, understanding the full monthly payment (including taxes and insurance), and working with a local professional can help buyers navigate these shifting conditions confidently.
What This Means for Sellers
For sellers, today’s Texas market rewards realistic pricing and strong presentation. Analysts note that while sales volumes are improving compared with the recent slowdown, overpriced homes now sit longer, and buyers are less willing to overlook outdated finishes or needed repairs.
Important takeaways for sellers:
Expect more negotiation: many buyers are asking for concessions, repairs, or price adjustments, especially if a home has been on the market for a while.
Condition matters more: in a cooling market, well‑prepared homes (clean, updated, staged, and well‑photographed) stand out and still attract strong offers.
Strategy beats hype: Pricing slightly ahead of the market and adjusting quickly if showings are slow is more effective than clinging to peak‑market expectations.
Even with a more balanced landscape, Texas remains an active and resilient real estate market, and motivated sellers who price correctly and market thoughtfully can still achieve solid results.
Bottom Line for Texas Real Estate Today
Texas mortgage rates are gradually easing from last year’s highs, while home prices and competition have cooled enough to give buyers more leverage and options than they have had in several years. The result is a market that is no longer overwhelmingly in favor of sellers; instead, it is transitioning toward balance, with a slight tilt toward buyers in many cities and price ranges.
For both buyers and sellers, staying updated on local data and working with professionals who track these shifts day‑to‑day is the best way to make smart, timely decisions in this evolving Texas market.
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