Mortgage Interest Rates Today

Understanding Today’s Mortgage Interest Rates

If you’re considering buying a home or refinancing in Texas, mortgage interest rates are likely top of mind. With the national average 30-year fixed mortgage APR hovering around 6% APR as of January 2026—down from over 7% APR just a year ago—understanding how these rates work can help you make smarter financial decisions.

At Texaslending.com, we believe that finding the right mortgage isn’t just about chasing the lowest rate you see advertised online. It’s about understanding how rates are determined, what factors you can control, and how to work with a lender who will customize your loan to fit your unique situation.

In this article, we’ll break down everything you need to know about mortgage interest rates in Texas—how they’re calculated, where they’re headed, and how you can secure the best rate for your home loan.

What Are Mortgage Interest Rates and Why Do They Matter?

Your mortgage interest rate determines how much you’ll pay to borrow money for your home. Even a small difference in rates can have a significant impact on your monthly payment and the total cost of your loan over time.

For example, on a $350,000 loan, the difference between a 6% APR and 7% APR  amounts to $231 per month—or nearly $83,000 when paid monthly over the life of a 30-year loan. That’s why it pays to understand how mortgage rates work and what you can do to get the best rate available.

Use our Purchase Calculator to see how different interest rates affect your monthly payment.

How Are Mortgage Interest Rates Determined?

Mortgage interest rates are influenced by a combination of economic factors and your individual financial profile.

The Federal Reserve and Economic Conditions

The Federal Reserve sets the federal funds rate, which influences borrowing costs throughout the economy. While the Fed doesn’t directly set mortgage rates, its policy decisions ripple through the financial system.

Mortgage rates more closely track the yield on 10-year Treasury bonds, which respond to factors like inflation expectations, economic growth, employment data, and investor sentiment. When investors anticipate stronger economic growth or higher inflation, bond yields typically rise—and mortgage rates follow.

After three rate cuts in late 2024 and additional cuts in 2025, the Federal Reserve has helped create an environment where mortgage rates have gradually declined from their 2023-2024 highs. Many economists expect rates on primary home purchase mortgages to reside in the 5.5% APR to 6.5% APR range through 2026, with the possibility of dipping below 6% APR if economic conditions warrant further Fed action.

Your Individual Financial Profile

While market conditions set the baseline for mortgage rates, your personal financial situation determines the rate you’ll actually receive. Lenders use several factors to assess risk and determine your rate:

• Credit Score: Your FICO credit score is one of the most important factors. Borrowers with scores of 780 or higher typically qualify for the best available rates. If your score is lower, you may still qualify for a mortgage, but at a higher rate.

• Down Payment: A larger down payment reduces the lender’s risk and can result in a lower rate. While many homebuyers pay a low downpayment, putting down 20% or more also allows you to avoid private mortgage insurance (PMI) on conventional loan programs.

• Loan Type and Term: Different loan programs (Conventional, FHA, VA, USDA) have different rate structures and down payment requirements. Generally, shorter loan terms like 15-year mortgages offer lower rates than 30-year loans.

• Loan Amount: Very large loans (jumbo loans) or very small loans may have different rate structures than conforming loans.

• Property Type: Rates for primary residences are typically lower than for investment properties or second homes.

Get started with a free pre-approval to see what rate you qualify for.

Why Advertised Rates Don’t Tell the Whole Story

When you see mortgage rates advertised online, keep in mind that these are often “best case scenario” rates—available only to borrowers with excellent credit, significant down payments, and ideal loan scenarios.

The rates posted on lender websites typically assume: credit score of 780 or higher, down payment of 20% or more, loan amount within conforming limits, single-family primary residence, and standard loan terms.

Your actual rate will depend on your specific circumstances. That’s why it’s essential to get a personalized quote from a mortgage professional who can evaluate your complete financial picture.

At Texaslending.com, we provide customized rate quotes based on your actual situation—not hypothetical best-case scenarios. Our licensed mortgage consultants take the time to understand your goals and show you the mortgage options that truly fit your needs.

Current Mortgage Rate Environment: What to Expect in 2026

As we move through 2026, the mortgage rate outlook remains cautiously optimistic for borrowers. According to Freddie Mac’s Primary Mortgage Market Survey, the average 30-year fixed-rate mortgage dropped to 6.06% in mid-January 2026—the lowest level since September 2022 and nearly a full percentage point lower than the same time last year.

Key trends shaping the current rate environment:

• Federal Reserve Policy: After cutting rates multiple times in late 2024 and 2025, the Fed appears poised to take a measured approach in 2026. Further cuts could come if inflation continues cooling or if labor market conditions soften.

• Inflation Trends: While inflation has come down significantly from its 2022 peaks, it remains above the Fed’s 2% target. The path of inflation will be a key determinant of where mortgage rates head next.

• Housing Market Activity: Lower rates have already sparked increased refinance and purchase activity. According to the Mortgage Bankers Association, refinance applications jumped 40% in early January compared to the previous week.

• Expert Forecasts: Most industry analysts expect fixed rates to remain in the 5.5% APR to 6.5% APR range through 2026, with the average dipping below 6% APR if economic conditions support further Fed easing.

Historical Perspective: Today’s Rates in Context

While today’s rates may feel high compared to the historic lows of 2020-2021 (when rates briefly dipped below 3%), they’re actually quite reasonable by historical standards.

Consider this perspective: 1980s average was 12-13%, 1990s average was 7-8%, 2000s average was 6-7%, 2010s average was 4-5%, 2020-2021 pandemic lows were 2.65-3.5%, and today’s APR for a home purchase typically found between 5.75% APR and 6.75% APR.

The ultra-low rates of the pandemic era were historically unprecedented—a response to extraordinary economic circumstances. Today’s rates, while higher than those lows, remain favorable compared to long-term averages.

For Texas homebuyers and homeowners, this means the current market still presents opportunities—whether you’re purchasing your first home, moving up, or considering a refinance to improve your financial situation.

How to Get the Best Mortgage Rate in Texas

While you can’t control market forces, there are several strategies to help you secure the best possible rate:

1. Improve Your Credit Score

Aim for a credit score of 780 or higher to qualify for the best rates. If your score needs work: pay all bills on time, keep credit card balances below 30% of your limits, avoid opening new credit accounts before applying for a mortgage, and review your credit report for errors.

2. Save for a Larger Down Payment

A down payment of 20% or more can help you qualify for a lower interest rate, avoid private mortgage insurance (PMI), and build instant equity in your home.

If you can’t put down 20%, don’t worry—there are excellent loan programs with lower down payment requirements. Many conventional loans and FHA loans require much lower down payments depending on your credit score, debt to income ratio, and other factors, while VA loans for eligible veterans and service members, and USDA loans require no down payment at all. Of course all different loan programs have different rates and APRs, as well as different qualification conditions and requirements.

3. Choose the Right Loan Type

Different loan programs offer different rate structures. Conventional loans typically offer the best rates for well-qualified borrowers. FHA loans can be a great option for borrowers with lower credit scores or smaller down payments. VA loans and USDA Loans offer competitive rates with no down payment requirement. Jumbo loans are available for loan amounts above conforming limits. And Non QM Loans mainly help buyers with alternative income documentation and credit requirements.

4. Consider Your Loan Term

Shorter loan terms typically come with lower interest rates. 15-year mortgages usually have rates lower than 30-year loans. You’ll pay significantly less interest over the life of the loan, and monthly payments will be higher, but you’ll build equity faster.

5. Shop Around and Compare

Getting quotes from multiple lenders can save you thousands of dollars. According to Freddie Mac, borrowers who get at least three quotes can save $600-$1,200 annually compared to those who only get one quote.

At Texaslending.com, we encourage you to shop around. We’re confident in our competitive rates and exceptional service, and we want you to make the best decision for your situation.

6. Lock Your Rate at the Right Time

Once you’ve found a rate you’re comfortable with, consider locking it in. Mortgage rates can change daily—or even multiple times per day. A rate lock protects you from market fluctuations while your loan is being processed.

At Texaslending.com, we typically offer 35-day rate locks, with longer lock periods up to 90 days, giving you time to complete the loan process without worrying about rate increases. Be sure to note a shorter lock period usually coincides with a better rate option.

Texas-Specific Considerations for Home Equity and Refinancing

If you’re considering a cash-out refinance or home equity loan in Texas, be aware that the state has unique regulations designed to protect homeowners:

• 80% LTV Maximum: Texas law limits borrowing to 80% of your home’s appraised value for home equity products.

• Mandatory Waiting Periods: A 12-day disclosure period and three-day rescission period are required before funds can be disbursed.

• 2% Fee Cap: Lender fees on home equity loans cannot exceed 2% of the principal amount.

• Closing Location Requirements: Home equity loans must close at a lender’s office, title company, or attorney’s office—not at your home.

• Primary Residence Only: Home equity products in Texas are only available on your primary residence.

These protections exist to help Texas homeowners avoid over-leveraging their most valuable asset. Our Texaslending consultants are experts in navigating these Texas-specific requirements.

Should You Buy Now or Wait for Lower Rates?

This is one of the most common questions we hear from potential homebuyers. While no one can predict exactly where rates will go, here are some factors to consider:

Arguments for buying now: Rates are already significantly lower than they were in 2023-2024. Waiting for lower rates means competing with more buyers who re-enter the market. Home prices may continue rising, offsetting any rate savings. You can always refinance later if rates drop further.

Arguments for waiting: Many forecasts suggest rates could dip below 6% later in 2026. A slightly lower rate could save thousands over the life of your loan. More inventory may come to market as rates decline.

The bottom line: If you find a home you love and can comfortably afford the payment, buying now may make sense. If rates drop significantly in the future, you’ll have the option to refinance.

Why Choose Texaslending.com for Your Mortgage?

At Texaslending.com, we offer more than just competitive rates. Here’s what sets us apart:

• Local Expertise: We’re Texas mortgage specialists with over 20 years of experience. We understand Texas-specific requirements and regulations that national lenders may miss.

• Personalized Service: We take time to understand your unique financial situation and homeownership goals. You’re not just a credit score to us—you’re a neighbor we’re helping achieve their dreams.

• Fast, Efficient Process: With in-house processing and underwriting, we can close loans in 30 days or less. Our technology makes the application process quick and convenient.

• Competitive Rates: We consistently offer some of the lowest rates available in Texas, and we’re proud to encourage comparison shopping because we know we deliver value.

• Free Pre-Approval: Get fully pre-approved at no cost or obligation. Our pre-approval process helps you shop for homes with confidence.

Ready to Get Started?

Whether you’re buying your first home, upgrading to your dream house, or looking to refinance your current mortgage, Texaslending.com is here to help you navigate today’s mortgage market.

Start Your Free Application Today. Our licensed mortgage consultants are ready to answer your questions and show you the best mortgage options available. Call us at 1-800-346-8047 or submit an inquiry online to get started.