Texas Mortgage and Refinance Rates

Current mortgage interest rates in Texas

As of Thursday, December 26, 2024, current interest rates in Texas are 7.00% for a 30-year fixed mortgage and 6.19% for a 15-year fixed mortgage.

The median home sale price in Texas was up just 0.6 percent year-over-year to $345,000 as of the second quarter of 2024, according to Texas Realtors, the state’s Realtor group. Some parts of the state saw significantly larger increases in prices, though. For example, median prices jumped by 11.7 percent and 11.1 percent year-over-year in Odessa and Abilene, respectively. Overall, home sales across the state slowed by 3 percent in the second quarter versus the year prior. 

Refinance rates in Texas

While refinance rates may not look that appealing for homeowners who scored record-low rates during early 2021, more than 11,700 loans in Texas were refinanced in June, according to ATTOM Data Solutions. Property values have soared in Texas, so some of those homeowners may have been tapping their equity with a cash-out refinance. 

Texas mortgage rate trends

Mortgage rates are the lowest they’ve been since May 2023. Positive inflation data suggest a greater likelihood that mortgage rates will ease up for the remainder of 2024. This could open the door for home buyers and sellers in Texas to get back out on the housing market.  

If you’re looking to buy a home in The Lone Star State, there is other good news: Active listings have increased by nearly 41 percent since the second quarter of 2023, according to Texas Realtors. In addition, while median prices have jumped in most of the state, they’ve actually dropped in four areas: Austin-Round Rock-San Marcos, Lubbock, San Antonio and Texarkana. Supply across the state is at 4.6 months of inventory, up from 3.1 months in the second quarter of 2023.

National mortgage rates by loan type

Mortgage statistics for Texas

Texas is home to a diverse economy. Houston and Dallas are two of the nation’s largest metro areas, and Austin has exploded in popularity in recent years. To help set your expectations for searching for and buying a home here, consider these statistics about mortgages and the Texas housing market:

• Homeownership rate, Q4 2023: 63.6% 
• Median down payment, June 2024: $23,125
• Median home sales price, Q2 2024: $345,000
• Median days on market, Q2 2024: 54
• Housing supply, Q2 2024: 4.6 months

Sources: ATTOM, Texas Realtors, U.S. Census Bureau

Mortgage options in Texas

So far in 2024, buyers have purchased nearly 147,000 homes across Texas, according to ATTOM Data Solutions. If you’re looking to become a part of the homebuying crowd, you have several loan options, depending on what you qualify for:

• Texas conventional mortgages: To qualify for a conventional mortgage, you’ll generally need a minimum 620 credit score and a debt-to-income (DTI) ratio of no more than 45 percent. If you make a down payment below 20 percent, you’ll need to pay private mortgage insurance (PMI), as well.
• Texas FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to secure a loan insured by the Federal Housing Administration (FHA). A credit score of at least 580 can help you get an FHA loan with a down payment of just 3.5 percent. You can still get an FHA loan with a credit score of 500, but that requires a 10 percent down payment. With an FHA loan, you’ll typically need a DTI between 31 percent to 41 percent. FHA loans generally have lower interest rates than conventional loans.
• Texas VA loans: If you’re a veteran or active-duty member of the military, you may qualify for a mortgage guaranteed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee, which ranges from 1.25 percent to 2.15 percent for the first use.
• Texas USDA loans: If you’re buying a rural property in Texas, you might be eligible for a mortgage guaranteed by the U.S. Department of Agriculture (USDA). These loans don’t require a down payment, but you’ll need to purchase in a designated rural area and meet the area’s income limits.
• Texas jumbo loans: If you want to buy a high-priced luxury property in Texas, you may need to borrow a jumbo loan if the price exceeds the local conforming loan limits. You’ll need to compare jumbo loan rates from multiple lenders, many of which will ask you for a down payment of at least 10 percent.

First-time homebuyer programs in Texas

If you’re looking to purchase your first home in The Lone Star State, you could be eligible for one or more first-time homebuyer programs. Most programs help buyers who haven’t owned a home in the past three years.

• My First Texas Home: Managed by the Texas Department of Housing and Community Affairs (TDHCA), the My First Texas Home program offers mortgages designed with smaller monthly payments. The program also provides small loans to help homebuyers cover down payments and closing costs. These can be worth up to 5 percent of your mortgage. You can find a participating lender online.
• Homes Sweet Texas Home Loan Program: You don’t need to be a first-time homebuyer to take advantage of the Homes Sweet Texas Home Loan program, which offers 30-year fixed-rate mortgages and down payment assistance grants worth up to 5 percent of the loan amount. You don’t need to pay the grants back, but you do need to meet certain income limits, which vary by county. You can find a participating lender online.
• Homes for Texas Heroes Home Loan Program: Available from the Texas State Affordable Housing Corporation, the Homes for Texas Heroes Home Loan Program is open to police officers, veterans, teachers, corrections officers and emergency medical services personnel. 
• Mortgage credit certificate (MCC): Mortgage credit certificates offered by the Texas State Affordable Housing Corporation (TSAHC) let you take tax credits based on how much you pay in interest on your mortgage each year.

How to find the best mortgage rate in Texas

• Step 1: Strengthen your credit score - Long before you start looking for a mortgage lender or applying for a loan, give your finances a checkup, and improve your credit score if needed.
• Step 2: Determine your budget - To find the right mortgage, you’ll need a good handle on how much house you can afford.
• Step 3: Know your mortgage options - There are a few different types of mortgages.
• Step 4: Compare rates and terms from several lenders - Rate-shop with at least three different banks, credit unions and/or mortgage companies to get the best deal.
• Step 5: Get preapproved for a mortgage - Getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation.

Additional Texas mortgage resources

• Texas loan limits by county: Learn the conforming loan limit for your city or town.
• Best mortgage lenders in Texas: Find out Bankrate’s top picks.
• Texas housing market overview: Know what to expect as a homebuyer or seller in Texas.
• Cost to buy a house in Texas: Home prices vary widely across the state. Narrow down your budget here.
• Homeowners insurance in Texas: Compare policies from a variety of providers.
• Mortgage calculator: Calculate possible mortgage payments to estimate what to expect.

Meet our Bankrate experts

Written by: Jeff Ostrowski, Principal Reporter, Mortgages

I cover mortgages and the housing market. Before joining Bankrate in 2020, I spent more than 20 years writing about real estate and the economy for the Palm Beach Post and the South Florida Business Journal. I’ve had a front-row seat for two housing booms and a housing bust. I’ve twice won gold awards from the National Association of Real Estate Editors, and since 2017 I’ve served on the nonprofit’s board of directors.

Read more from Jeff Ostrowski

Laurie Richards, Editor, Home Lending

I’ve spent five years in writing and editing roles, and I now focus on mortgage, mortgage relief, homebuying and mortgage refinancing topics. I’m most interested in providing resources for aspiring first-time homeowners to help demystify the homebuying process. In 2021, I earned a Poynter ACES Certificate in Editing. I have an MA in English. 

Read more from Laurie Richards