Texas Mortgage and Refinance Rates

Current mortgage interest rates in Texas

As of Wednesday, May 14, 2025, current interest rates in Texas are 7.13% for a 30-year fixed mortgage and 6.38% for a 15-year fixed mortgage. That follows the same story as mortgage rates throughout the rest of the country: Borrowers are slowly accepting the reality that somewhere near 7 percent is going to be the norm for the foreseeable future.

Some experts predict that rates will steadily decline by the end of 2025. For instance, Fannie Mae’s April housing forecast predicts mortgage rates will fall to 6.2 percent by the end of the year, but there’s no guarantee. Translation: If you’re thinking about buying a home in the Lone Star State, there’s not much sense in waiting.

Refinance rates in Texas

If you bought your home in Texas when rates peaked near 8 percent in the fall of 2023, refinancing now could create meaningful savings in your budget. Like purchase rates, refinance rates in Texas are probably going to hover in the same territory for much of 2025. If you have owned your home in Texas for a while, you may also want to look into cash-out refinance options. You may have a sizable amount of available equity to help pursue other goals such as a home renovation or paying off high-interest debt.

National mortgage rates by loan type

Texas mortgage rate housing market statistics and trends

After years of runaway price increases as more people flocked to the Lone Star State during the pandemic, the Texas housing market is cooling off. Prices here increased by a nominal 0.3 percent between the first quarter of 2024 and the first quarter of 2025, according to data from Texas Realtors. The state has a housing supply of 4.8 months – not too far away from the 6 months that reflects a balanced market.

Keep in mind, however, that Texas is massive. For example, consider how the story varies across the state according to Redfin’s data: Prices in El Paso have increased by more than 3 percent over the past year, while prices in San Antonio have moved in the opposite direction and dropped by nearly 4 percent. Statewide, here’s where the market currently stands:

• Median home sales price, Q1 2025: $331,000
• Median days on market, Q1 2025: 72 
• Median down payment, February 2025: $70,000
• Number of homes for sale, February 2025: +16% YoY

Sources: Texas Realtors, ATTOM, Redfin

Mortgage options in Texas

If you’re looking to become a homeowner, 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. They include:

• 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.

How to find the best mortgage rate in Texas for you

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.
• Homeowners insurance in Texas: Compare policies from a variety of providers.

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

Edited by: Chris Jennings, Editor, Home Lending

I’ve been writing and editing about mortgages and personal finance since 2016. At Bankrate, my primary focus involves covering mortgage and real estate trends. I enjoy simplifying complex mortgage topics for first-time homebuyers and homeowners alike. I graduated from Illinois State University with a Bachelor of Arts in English.

Read more from Chris Jennings