Texas ranks among the fastest-growing states in the US. An affordable cost of living, temperate weather, and booming job market make this state a win for newcomers. Observing such rising competition among prospective buyers, it is important to secure the best mortgage rates Texas to afford your dream home.
It makes sense why American residents are moving to the Lone Star State when you also consider its rich culture and reasonable cost of living. Furthermore, Texas is also among the very few states which don’t impose a personal or state tax.
Texas mortgage rates tend to move in the same direction as national mortgage rates, but the rate a Texas borrower actually receives can vary based on credit, down payment, loan program, property type, points, lender pricing, and other factors.
As of September 10, 2026, Freddie Mac reported a national average of 6.76% for a 30-year fixed-rate mortgage and 6.09% for a 15-year fixed-rate mortgage. These national averages provide useful context, but they are not a substitute for a personalized mortgage quote.
Texas also has a highly competitive lending market across major metros such as Houston, Dallas, Austin, and San Antonio. Comparing options can be especially important because two lenders can price the same borrower and property differently.
Texas Policies On Mortgage
According to SmartAsset, getting a mortgage in Texas is a very consumer-friendly process. This is because the state government has put several consumer protections in place that help prevent property foreclosures. The regulations governing mortgages in Texas are willing to restrict the amount of risk that property owners may assume.
Also, Check – Mortgage Lenders Texas
For example, one of the regulations includes that a home’s total mortgage debt cannot exceed 80% of the property’s market value. This ensures that you can’t pile on a second home equity loan only to end up owing more than the worth of the property, especially if property values decline.
In Texas, mortgage fees and costs are capped at 3% of the loan principal. Moreover, on a refinance transaction, even after signing your loan documents on a mortgage, you have three days to change your mind and cancel the transaction without having to pay a penalty for doing so.
National and Texas Mortgage Rate Trends
As per Forbes, the cost of borrowing is rising. This continuous rise in mortgage interest rates will impact the homeowners and borrowers equally. After seeing the largest quarterly increase in 28 years in the first quarter, mortgage interest rates on the conventional 30-year fixed loan are now over 3% higher than they were at the beginning of this year.
Rising inflation and the Federal Reserve’s proactive monetary policy in response are putting pressure on mortgage interest rates to rise. Experts predict that the 30-year fixed-mortgage rate will range between 5% and 7% by the end of 2022.
Paul Thomas, Zillow’s Vice President of Capital Markets and Finance, also mentions that with the current state of the economy and Federal Reserve guidelines, mortgage interest rates may not drop considerably soon.
How Texas Mortgage Rates Compare to the National Average?
Texas mortgage rates are closely connected to national market conditions. The same economic forces that influence mortgage pricing across the country also affect borrowers in Texas.
What moves an individual Texas borrower’s quote above or below a market average is usually less about the state itself and more about the specific transaction. Credit profile, loan-to-value ratio, loan amount, occupancy, property type, points, and lender pricing can all influence the final rate.
Texas borrowers should also pay attention to the total monthly housing payment. Property taxes and homeowners insurance can be significant, and Gulf Coast properties may have additional windstorm or flood insurance considerations.
Texas Rate Trends: What’s Moving the Market?
Mortgage rates can change as financial markets react to inflation data, employment reports, economic growth, Federal Reserve policy expectations, and movements in Treasury yields and mortgage-backed securities.
Freddie Mac’s weekly survey shows how quickly the market can shift. The national average 30-year fixed rate was 6.49% on July 9, 2026, 6.69% on August 6, and 6.76% on September 10.
Most buyers cannot reliably time the mortgage market. A more practical strategy is to get preapproved, understand the monthly payment you are comfortable carrying, compare loan options, and discuss a rate lock once you are under contract.
Calculate mortgage interest rates for Texas using the Mortgage Calculator
Current Texas Mortgage Rates: 2026 Update
According to recent data, mortgage rates have remained stable in early 2026. However, following the Federal Reserve’s recent rate-cutting cycle, national rates have declined, providing a general benchmark. Local market conditions, however, may cause rates to vary across different regions.
Texas buyers are seeing unique opportunities due to high housing inventory in many areas, which means there are more homes for sale and more choices for buyers. As a result, lenders are competing aggressively to attract borrowers by offering lower interest rates, better loan terms, and special promotions. In this section, we provide a daily rate comparison between purchase and refinance loans.
|
Loan Type |
Purchase Rate (Interest) |
Purchase APR |
Refinance Rate |
|
30-Year Fixed |
6.16% |
6.22% |
6.52% |
|
15-Year Fixed |
5.49% |
5.58% |
5.81% |
|
30-Year FHA |
6.48% |
6.54% |
7.29% |
|
5/1 ARM |
5.47% |
6.00% |
5.96% |
The Taxes Trade-Off: Rates vs Property Taxes
When comparing Texas mortgage rates to those in other states, several factors come into play. At Reliance Financial, we simplify the comparison:
- Texas has no state income tax, which can result in greater overall savings.
- To offset this, Texas typically has higher property taxes.
- Higher property taxes can increase your APR and monthly escrow payments.
|
Major Texas City |
Avg. Property Tax Rate (2026) |
Median Home Price |
|
Houston |
2.31% |
$350,000 |
|
Dallas |
2.22% |
$415,000 |
|
Austin |
1.95% |
$540,000 |
|
San Antonio |
1.99% |
$320,000 |
Current Mortgage Rates Texas
Here are the current mortgage rates Texas, reported by Zillow, as of July 15, 2022. These rates are subject to change over time. So please click here to get a rate quote that is specifically made for you.
- Texas’s current 30-year fixed mortgage rate decreased 3 basis points from 5.36% to 5.33%. Texas mortgage interest rates today are 5 basis points lower than the national average rate of 5.38%.
- The Texas mortgage interest rate on July 15, 202, is up 7 basis points from last week’s average Texas rate of 5.26%.
- Additionally, the current average 15-year fixed mortgage rate in Texas decreased 5 basis points from 4.45% to 4.40% and the current average 5-year ARM (Adjustable Rate Mortgage) rate is up 1 basis point from 4.72% to 4.73%.
Knowing the latest rates can help you decide the right time for you to move forward with your home purchase. You are making a huge financial decision of buying a house. By reviewing these rates, you can understand the impact they can have on your mortgage interest rates. Moreover, you may be able to save thousands of dollars over the term of paying your loan off!
Why Mortgage Rates Vary Between Lenders in Texas?
Two Texas borrowers with similar credit scores, down payments, and loan amounts can still receive different rate quotes from different lenders. Each lender has its own pricing, risk guidelines, loan programs, fees, and business objectives.
That is why comparison shopping matters. The Consumer Financial Protection Bureau recommends comparing at least three loan offers. CFPB also notes that homebuyers can potentially save $600 to $1,200 per year by obtaining mortgage offers from multiple lenders.
When comparing offers, look at more than the interest rate. Review the APR, discount points, lender credits, origination charges, cash needed to close, mortgage insurance when applicable, and the overall loan structure.
Today’s Texas Mortgage Rates
The following rate table is retained from the original Reliance Financial draft. Mortgage rates and APRs can change without notice and vary by borrower and transaction. Before publication, Reliance Financial should confirm the pricing date, loan assumptions, points, loan amount, loan-to-value ratio, credit assumptions, and payment methodology associated with these figures.
| Loan Type | Rate | APR | Est. Monthly Payment* |
| 30-Year Fixed | 6.88% | 7.06% | $2,183 |
| 20-Year Fixed | 6.84% | 6.90% | $2,240 |
| 15-Year Fixed | 6.13% | 6.41% | $2,906 |
| 10-Year Fixed | 5.88% | 6.32% | $3,893 |
| 7/6 ARM | 6.63% | 6.69% | $2,127 |
| 5/1 ARM | 5.47% | 6.00% | $1,477 |
| 30-Year FHA | 6.48% | 6.73% | $2,277 |
| 30-Year VA | 5.88% | 6.22% | $2,096 |
| 30-Year Jumbo | 6.38% | 6.56% | $5,849 |
*Estimated payment figures are reproduced from the original draft and should be verified before publication. Payment examples should identify the assumed loan amount and should state whether taxes, insurance, mortgage insurance, HOA dues, and other costs are excluded.
What Can Change Your Texas Mortgage Rate?
Credit profile: Credit history and score can affect both loan eligibility and pricing.
Down payment and loan-to-value ratio: The amount of equity in the transaction can affect pricing and program eligibility.
Loan type: Conventional, FHA, VA, jumbo, and adjustable-rate mortgages can have different pricing structures and qualification requirements.
Property and occupancy: A primary residence, second home, investment property, condominium, or other property type may be priced differently.
Points and lender credits: Borrowers may be able to pay discount points for a lower rate or accept a higher rate in exchange for lender credits, depending on the program.
Property Taxes and Home Prices by Texas Metro
Texas has no state property tax. Property taxes are assessed and administered locally by counties, cities, school districts, and other taxing units. Actual taxes vary by property, appraised value, exemptions, and the combination of local taxing jurisdictions that apply.
The metro table below is retained from the original draft for continuity. Because tax rates, home prices, and property-level tax bills can change, Reliance Financial should verify the figures and source date before publication.
| City | Avg. Property Tax Rate (2026) | Median Home Price | Est. Monthly Escrow Impact |
| Houston | 2.31% | $350,000 | ~$674/mo |
| Dallas | 2.22% | $415,000 | ~$768/mo |
| Austin | 1.95% | $540,000 | ~$878/mo |
| San Antonio | 1.99% | $320,000 | ~$531/mo |
| Fort Worth | 2.19% | $335,000 | ~$611/mo |
| El Paso | 2.30% | $245,000 | ~$470/mo |
Higher property taxes can increase the amount a homeowner pays each month when taxes are escrowed. They do not, by themselves, increase the mortgage note rate or APR. Buyers should evaluate property taxes alongside principal, interest, homeowners insurance, mortgage insurance when applicable, HOA dues, and other recurring housing costs.
For a property-specific estimate, review the applicable county appraisal district and local tax information rather than relying only on a citywide average.
Rate vs. APR: Why the Difference Matters
The mortgage interest rate is used to calculate interest on the loan balance. APR is a broader measure of the cost of credit and includes certain finance charges in addition to the interest rate.
A lower advertised rate can sometimes come with higher upfront costs. When comparing lenders, review both the rate and APR, along with points, lender fees, credits, and total cash needed to close.
Should You Lock Your Mortgage Rate?
A mortgage rate lock generally protects an agreed rate for a specified period while the loan moves toward closing, subject to the lender’s lock terms and the transaction remaining eligible.
Whether to lock or wait depends on the closing timeline, current pricing, risk tolerance, and lender policy. Once you are under contract, ask about the lock period, expiration date, extension costs, and any available float-down options.
Refinancing Could Be An Option
Due to the rapidly rising mortgage interest rates, many Texas homeowners are racing to refinance their homes to save money. Black Knight, a data analytics company, defines refinance-eligible borrowers as having a minimum of 720 credit scores. Further, at least 20% equity is required. Homeowners should look to lower down their interest rate by at least 0.50%. through refinancing into a 30-year fixed mortgage.
Even though there are refinancing choices available, not all of them result in lower interest rates. Many other factors can decide the interest rates. These factors are not limited to your credit score. Moreover, your property type, loan amount, and loan-to-value (LTV) ratio are included. Even if, you are trying to do a cash-out refinance.
Moreover, your closing costs to refinance can run between 2% to 5% of the loan amount, depending on the lender. If you sell shortly after refinancing, the closing costs can eat up your savings. Choosing the rate mortgage lender can help you save a tidy amount. Hence you must do your homework to choose the right mortgage lender. One way to do this would be to research and read online reviews provided to the lender by past customers.
Take Aways
Different states can have different loan options and rates. To be sure you’re obtaining the best rate possible on your property purchase in Texas or for an existing property you are looking to refinance, we suggest you do the following:
- Do your due diligence in comparing mortgage interest rates between 3 – 5 mortgage lenders
- Check Texas mortgage interest rates every day before applying for a loan
- Get pre-qualified with a Texas-licensed lender before you begin your house search to help you determine how much you can afford and position yourself for success
- If you already have a mortgage and want to refinance, get personalized rates for your specific situation
Contact Reliance Financial to learn more about the requirements for applying for a mortgage in your area. You can call at (888) 973-5346 or simply click here to seek a rate quote.
Frequently Asked Questions About Mortgage Rates Texas
Q1: What is the best way to obtain the best mortgage interest rates?
- A Good Credit Score: A good credit score is a must to have the best interest rate for a mortgage. A credit score below 760 would be worth the effort to first try to increase it. Therefore, start making timely payments or seeking guidance from a credit counselor.
- Save Up for a Bigger Down Payment: If you make a small payment (anything less than 20% on a conventional loan), the lender will consider you a high-risk borrower as compared to someone who paid a higher down payment. If this occurs, you might even have to pay private mortgage insurance (PMI) premiums, and this will increase your monthly payment and total borrowing costs.
- Think About All Loan Types: Lenders typically provide a variety of loan options, each with a unique interest rate. There are different product and loan options for first-time homebuyers. When weighing your alternatives, find out what you might be eligible for and find the best deal based on your situation.
- Sharpen Your Debt-To-Income (DTI): Borrowers with good to exceptional credit and low debt-to-income ratios receive the best rates from lenders. Ideally, your DTI should be 43% or less. A way to decrease this number is to either increase your income or decrease your expenses.
- Think About Closing Costs: In Texas, closing fees should cost you 2 to 5 percent of the total purchase price. Some homebuyers will trade greater closing fees for lower interest rates. To determine the actual cost of your mortgage, compare the overall charges and the interest rate with your mortgage loan originator.
Mortgage rates Texas vary depending on the type of loan, and your rate will change primarily by the lender side as per your credit score.
Q2: Should I go for a rate lock?
For the majority of buyers, it makes sense to initially enter into a purchase agreement for a particular piece of real estate before making an effort to lock in a mortgage rate. Mortgage interest rates can ONLY be locked against a property you plan to purchase. For example, if you find a property that you are willing to purchase and move forward to lock the rate but then decide to purchase another property instead, now the rate lock is not transferable. You will need to relock the rate again.
Rate locks are normally for a period of 30-45 days. If your home closing will take longer than the normal periods, then you should avoid locking in the rate too soon. If your loan doesn’t fund within the time frame you locked it for then your rate lock offer will expire. You must therefore ensure that the length of your lock-in will allow the lender sufficient time to process the loan. Get your lender to lock in your rate for as long as possible to protect yourself by asking them to share the typical loan processing time.
We highly recommend that you exercise prudence before locking your rate.
Q3: What affects mortgage rates in Texas?
In the competitive mortgage market, there are many things that influence the mortgage rates in Texas. Let’s talk about them,
Broader Factors: It simply means the factor that is outside your control.
- The national economy (strong and weak economies affect the rates)
- Inflation (higher inflation can push rates up)
- Federal Reserve policy (their decision influences the rates)
- The Bond Market affects how lenders price loans. Local market conditions (supply, demand, and lender competition can change rates. Personal Factors: It’s not only the outside factors that affect the rate. There are some of your own finances.
- Credit score (higher scores usually help to get lower rates)
- Loan type (different loans type means different rates)
- Down payment (a bigger down payment can lower your rates)
Q4: How often do mortgage rates change?
In simple words, Daily, yes, you read right, the mortgage rates fluctuate daily and sometimes multiple times per day based on economic data, bond yields, and market sentiment. All these factors affect the mortgage rates.
Q5: What’s the difference between fixed and adjustable rates?
Fixed-rate mortgage: As it sounds (fixed), the interest rate stays the same for the whole loan, so your monthly payments don’t change.
Adjustable-rate mortgage: In this mortgage, initially a lower rate is offered, but the rate can go up and down after a few years, which directly impacts your payment by going higher and lower.
Q6: How do my credit score and down payment affect my rate?
Credit Score: When it comes to credit score, this is your first impression on lenders. Generally, having a higher credit score helps you to secure lower mortgage rates because lenders see you as less risky.
Down Payment: In this your rate primarily depends on your down payment; the bigger the down payment, the lower your rate because it reduces the lender’s risk.
Note: It’s true that these help, but don’t forget that vice versa can cause you trouble in rates.
Q7: What are discount points?
Discount points are the extra fees you pay when closing to lower your mortgage interest rate. If we talk about how much one point is worth in the loan,
1 Point = 1% of your loan
These points are upfront fees you can pay at closing to lower your interest rate.
Q8: Can I lock in a mortgage rate in Texas?
Yes, you can, as we know the loan process takes time. That’s where the locking rate for a set period, which is commonly 30-60 days, protects you from rising rates while your loan progresses.
Q9: Do mortgage rates differ by lender?
Yes, they are different. Lenders set their rates based on,
- Cost
- Risk tolerance
- Profit models
That’s why shopping multiple lenders, including banks, credit unions, and online lenders, helps you to compare rates and fees so that you choose the right mortgage lender.
Q10: How can I get the best mortgage rate in Texas?
To improve your chances of a low rate, focus on
- Strengthen your credit score
- Reduce debt
- Go with a larger down payment to get lower rates
- Comparing multiple lenders
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