One of the biggest struggles across the United States today is the difficulty of finding affordable housing. Many Americans have found themselves rent-burdened, while YouGov states that more than half of Americans are struggling to afford housing as a whole.
How do mortgage rates play into this trend, and does Houston have independent trends from the rest of the nation? Houston is one of the most desirable places to live in Texas, and Houston home loans tend to reflect that fact.
If you're curious about mortgage rates in Houston, we're here to help guide you. Read on for a brief overview of the latest trends in Houston, Texas's mortgages.
Rising Prices
Texas's mortgage rates have been rising over the last few years, and Houston is no exception. We've seen Houston hit new record highs as recently as 2023.
In October of 2023, the 30-year fixed mortgage rate hit 7.79%. That number is the highest it's been since 2000, and is more than double the sub-3% mortgage rate that most of 2020 and 2021 enjoyed.
Somewhat Dropping
While October 2023 saw an immense peak, mortgage rates have dropped since then. According to Bankrate, the current Texas rate for a 15-year fixed mortgage is about 6.38% as of August 17th, 2024. The 30-year mortgage is about 6.63% for the same date.
These rates are lower, but still incredibly high by most accounts. If the trend continues, we may come closer to the 2020 rates before long.
Stronger Competition
Another note to make of Houston's housing market is that the mortgage rates are largely being charged by a highly competitive market. Houston is an exceptional city, and many people want to live here.
As such, many people are accepting high mortgage rates. Afterward, mortgage refinancing often helps to take Houston home loans back under control.
When looking for the best mortgage rates in Houston, consider what part of the city you're searching in. You should also find reputable mortgage lenders in Houston so that you're able to discuss a comprehensive and easy-to-handle home loan.
Why the Rise?
Part of the reason for this is the heavily limited supply. Homes are going for much higher prices due to more people buying than there are homes to sell.
Another issue is that fewer people are moving out of their current homes. Many people can't afford to buy another house and don't want to become rent-burdened as so many Americans are, while others are renting their homes out.
Since they can't move, homes are staying stagnant on the market or not entering the market at all. Fewer people can afford to move, and fewer people can afford to purchase a house even if it were available.
Understanding Mortgage Rates
Mortgage rates in Houston are beginning to decline after hitting record highs in late 2023. As they decline, they're in the mid-6% range currently and are being driven mostly by limited housing and the growing cost of moving.
At PMI Infinito, we're a full-service real estate management company dedicated to providing our clients with excellent customer service. We're here to help you maximize profitability and preserve your investment. Contact us to see how our prompt, friendly, professional services can help.
