Texas Mortgage and Refinance Rates

Current mortgage interest rates in Texas

As of Saturday, August 09, 2025, current interest rates in Texas are 7.70% for a 30-year fixed mortgage and 6.25% for a 15-year fixed mortgage.

If you’re waiting for mortgage rates to fall significantly in the Lone Star State, you might be disappointed. While rates have decreased since their recent high around 8 percent in late 2023, they’re still hovering between 6 and 7 percent. Though recent economic uncertainty has driven rates a bit lower, they remain above 6 percent, and most mortgage experts expect them to stay there through the end of the year and into 2026. 

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 save you money. According to real estate data provider ATTOM, there were more than 19,400 refinance applications in the state in May, a 42 percent year-over-year increase. 

Home values in Texas are also increasing a bit more quickly than in some other parts of the country, so even if you bought relatively recently, you may have more equity than you think. If you have a big expense coming up, a cash-out refinance could help you pay for it more cheaply than other forms of borrowing. 

National mortgage rates by loan type

Texas housing market statistics and trends

After years of runaway price increases as people flocked to Texas during the pandemic, the state’s housing market is getting slightly friendlier for buyers. Prices still increased by more than 6 percent year-over-year in May, but Texas homes also spend a relatively high number of days on the market, according to Texas Realtors, and 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, and different cities have different real estate markets. For example, according to Redfin’s data, prices in Houston have increased by more than 6 percent over the past year, while prices in Austin have increased by only 0.7 percent during the same period. Statewide, here’s where the market currently stands:

• Median home sales price, May 2025: $354,375
• Median home value, May 2025: $315,815
• Median down payment, May 2025: $20,000
• Median days on market, June 2025: 54
• Percentage of homes sold above list price, June 2025: 12.9%
• Percentage of homes with price drops, June 2025: 39.5%
• Homeownership rate, Q1 2025: 63.3%

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

Mortgage options in Texas

If you’re looking to become a homeowner, you have several loan options:

• 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 typically 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 of the loan amount for first-time buyers.
• 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. You’ll need to compare jumbo loan rates from multiple lenders, many of which will require a down payment of at least 10 percent.

First-time homebuyer programs in Texas

If you’re looking to purchase your first home in Texas, you could be eligible for one or more first-time homebuyer programs. Most 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: Alice Holbrook, Editor, Home Lending

I have been a writer and editor in the personal finance space for more than a decade, with more than three of those focused on homebuying and homeownership. I’ve had work appear in outlets including Newsweek, The Washington Post, The Associated Press, USA Today and MarketWatch.

Read more from Alice Holbrook