Mortgage rates in Texas are currently in the mid-6% range and have risen slightly over the past few weeks after a brief dip in early July.
What are mortgage rates in Texas right now?
The national average 30-year fixed-rate mortgage rate was 6.55% last week, and Texas rates are typically only a few basis points off the national figure, as Texas is one of the largest and most liquid lending markets in the country.
Freddie Mac’s PMMS survey showed that the average 30-year fixed-rate mortgage rate on July 16, 2026, was 6.55%, up from 6.49% the previous week. The average 15-year fixed rate was 5.93% the same week.
That’s part of a relatively narrow range that rates have been in since mid-May. Rates fell to 6.43% the week of July 2, 2026, before rising again. Compared to a year ago, both rates are actually lower: The average 30-year rate at that time was 6.75% and the average 15-year rate was 5.92%. Freddie Mac
What this means for your payment: On a $320,000 loan, the difference between a 6.43% and 6.55% rate is roughly $25 per month, or about $9,000 over the life of the loan (based on a standard amortization calculation, not a third-party figure). Small changes matter, and so does the timing of your rate lock-in.
Why have Texas mortgage rates changed this year?
Rates follow the bond market more than any single Fed decision, but Fed policy sets the overall direction. Freddie Mac’s chief economist has cited the easing in homebuyer demand, along with improving affordability and rising inventory, as a sign that the market is balancing out, rather than overheating.
For Texas specifically, this balancing out trend is also reflected in the numbers. The Texas Center for Real Estate Research at Texas A&M projects that the median home price statewide will reach about $334,000 by the end of 2026, up 1.3% from 2025, as easier financing conditions support modest growth. This environment is a significant departure from the bidding wars of the past few years, giving buyers more room to negotiate prices, even as rates remain high. Texas Real Estate Research Center
Texas Mortgage Types
Conventional Loans
Conventional loans are not federally insured and are best for buyers with strong credit and a decent down payment. They come in two types: conforming, which meets Fannie Mae and Freddie Mac standards, and nonconforming (jumbo), which does not.
For 2026, no counties in Texas will qualify for the higher loan cap, so the FHFA base cap of $832,750 will apply uniformly across the state, up from $806,500 in 2025. Anything above that amount requires a jumbo loan, which typically comes with stricter credit and down payment requirements.
FHA Loans
FHA loans are suitable for borrowers with lower credit scores or smaller down payments. FHA allows a minimum credit score of 580 with a 3.5% down payment, or as low as 500 if you have a 10% down payment. The trade-off for this advantage is the mortgage insurance premium, which covers the initial and monthly costs and lasts longer than conventional loans.
VA Loans
VA loans are designed for members of the military, veterans, and their spouses. With no down payment, no PMI, and closing costs, they often have a cap and can be paid by the seller. VA loans do not have an official government-mandated minimum credit score, although different lenders often set their own minimum scores.
Fixed-Rate Mortgages
These loans keep the same rate for the entire term of the loan, so your principal and interest payments never change. They are available in 15-, 20-, and 30-year terms and are a good fit for people who plan to stay in their home for a long time.
Adjustable-Rate Mortgages (ARMs)
ARMs start with a lower rate that adjusts to the market after a fixed initial term. These loans can make sense if you don’t plan to stay in your home for a long time, but they come with the risk of higher payments in the future if rates rise.
USDA Loans
USDA loans are used to finance properties located in rural areas and are guaranteed by the United States Department of Agriculture. These loans offer 100% financing, which can include closing costs and repairs, subject to a property appraisal.
Jumbo Loans
Jumbo loans cover purchases that are above the limits of conforming loans. Since Fannie Mae and Freddie Mac do not purchase these loans, lenders retain more of the risk, which usually means larger down payments and, usually, a minimum credit score in the 700 to 720+ range.
How to Increase Your Chances of Getting a Mortgage in Texas
First, understand your loan options
Fixed-rate loans give you predictable payments over the life of the loan. ARM loans start at a lower rate, but they can increase. Knowing which option fits your schedule before you start looking will save you from having to switch loans mid-way through the process.
Improve Your Credit Score
Credit requirements have changed recently. Fannie Mae and Freddie Mac have eliminated the fixed 620 credit score minimum for loans that use an automated appraisal process, relying instead on an analysis of your overall financial profile, including financial reserves and down payment amount. A 620 score is still a useful benchmark for loans that are manually reviewed as well as for many lenders’ internal requirements, and the FHA minimum score is still 580 with a 3.5% down payment. Reducing credit card debt, disputing errors on your credit report, and making timely payments all play a role in this regard.
Manage Your Down Payment
The conventional HomeReady and Home Possible programs allow for down payments as low as 3%, the FHA requires a 3.5% down payment at the 580 score level, and VA and USDA loans can be offered with zero down payments for qualified borrowers.
Keep an eye on your debt-to-income ratio
Under the CFPB’s Qualified Mortgage Act, the traditional benchmark for total debt-to-income ratio was 43%, although the general definition of QM has since shifted to a price-based threshold rather than a strict DTI cap. In practice, keeping your monthly debt, including new mortgage payments, significantly below the 43% mark still bolsters most loan applications. Consumer Finance
Budget for the full cost of homeownership
Property taxes, insurance, HOA fees, and maintenance are all costs that add up beyond the mortgage payment itself. Texas does not have a state income tax, but Texas homeowners paid a median of $4,232 in property taxes in 2026, based on a median home value of $283,800, the seventh-highest property tax in the country; So factor this into your monthly budget from the start. CultureMap Dallas
Organize Your Documents
Pay stubs, W-2s or 1099s, the last two years of tax returns, and recent bank statements are standard documents. Self-employed borrowers should expect to see more documentation, including income and expense reports.
Get pre-approved before you start looking for a home
A pre-approval shows you how much you can actually borrow and shows sellers that you are a serious and prepared buyer—something that is even more important in a market where inventory is increasing and sellers are competing more for buyers’ attention.
Find a Mortgage Broker in Texas
The Mortgage Shop is your trusted mortgage broker in Texas, built to match you with the right loan for your purchase or investment, rather than pushing a specific product on you. Our team will guide you directly through the process, rather than referring you to a call center.
This service also includes our mortgage education program, which covers the concepts buyers ask about most, such as the difference between Annual Percentage Rates and Interest Rates and how each actually affects your monthly payment.
We work with a wide network of lenders and review your loan across this network, rather than just offering a single rate table; this is what allows us to often find you better terms than a single bank’s rate offer. These include conventional loans, DSCR programs and No DOC loans for self-employed borrowers and investors. Contact a mortgage advisor from The Mortgage Shop to see what loan you qualify for.
