Houston Mortgage Rates Today

For buyers who have been waiting for rates to come down, they came down. For buyers trying to decide whether now is the right time to act, this page gives you what you need to understand the current environment and what it means for your monthly payment.

I'm Brandon Huynh, loan officer at Lock It Mortgage (NMLS #2522494), based in Houston and licensed in all 50 states. For a personalized rate quote based on your credit score, down payment, and loan type, call 832-997-1527.

Current Mortgage Rates in Houston, TX

Rate assumptions: Conventional rates assume 740+ credit score, 20% down, single-family primary residence, Harris County TX. FHA rates assume 680+ credit score, 3.5% down. APR includes 0.55% annual MIP and 1.75% upfront MIP. VA rates assume 700+ credit, 0% down, first-time VA use. APR includes VA funding fee. Jumbo assumes 740+ credit, 20% down, loan over $832,750. DSCR assumes 720+ credit, 25% down, investment property, DSCR 1.25 or higher. Rates subject to change without notice. Monthly P&I calculated on a $325,000 loan amount and does not include property taxes, insurance, or mortgage insurance.

Loan Type	Rate	APR	Monthly P&I on $325K
30-Year Fixed Conventional	5.875%	6.01%	$1,923
15-Year Fixed Conventional	5.375%	5.50%	$2,627
FHA 30-Year Fixed	5.500%	6.10%	$1,845
VA 30-Year Fixed	5.250%	5.45%	$1,795
Jumbo 30-Year Fixed	6.250%	6.35%	$2,002
DSCR 30-Year Fixed	7.000%	7.15%	$2,162

The index rates published by Freddie Mac and Bankrate are survey averages across a wide range of lenders and borrower profiles. Your actual quoted rate will depend on your credit score, down payment, loan type, and property. In a competitive local market like Houston, well-qualified borrowers often get quoted below the national average.

The 2026 conforming loan limit for Harris County is $832,750. Any loan above that threshold is classified as jumbo and carries a higher rate. For most Houston buyers purchasing at or below the median price of $322,045, conforming loan limits are not a constraint.

Houston Rate Trends: What Changed This Month

Rates dropped below 6% for the first time in over three years. That is a meaningful shift that changes the monthly payment math for a large number of buyers who were priced out at 7% or 7.5%.

Here is the context behind the move. The Federal Reserve held its benchmark rate steady at 3.50% to 3.75% at its January 28, 2026 FOMC meeting, as expected. Two members dissented in favor of a 25 basis point cut. The next FOMC meeting is March 17 through 18, 2026. As of late February, CME FedWatch data shows a 94.1% probability of no change at that meeting.

Mortgage rates track the 10-year Treasury yield more closely than the Fed funds rate. The 10-year Treasury closed at 3.97% on February 27, its lowest level in four months. January's CPI report showed headline inflation at 2.4% year over year, down from 2.7% in December. Core CPI came in at 2.5%, the lowest since April 2021. Inflation cooling toward the Fed's 2% target is what has given rates room to fall.

The historical comparison matters for buyers evaluating urgency. The 30-year fixed averaged 7.79% at the October 2023 peak. It averaged 6.76% one year ago in February 2025. At today's rate of 5.98%, the monthly principal and interest payment on the Houston median home of $322,045 with 20% down is $1,561. That same payment was $1,723 twelve months ago. The difference is $162 per month or roughly $1,940 per year.

For buyers under contract or actively shopping, this is an environment that rewards moving with a plan rather than waiting for the market to improve further. The consensus forecast for 2026 from Fannie Mae, the Mortgage Bankers Association, and the National Association of Realtors projects rates staying in the 6.0% to 6.2% range through the year. Further declines are possible but not the base case.

How Houston Mortgage Rates Compare by Loan Type

Each loan program carries a different rate for structural reasons. Understanding why helps you choose the right program, not just the one with the lowest advertised rate.

VA loans carry the lowest rates because they are backed by the Department of Veterans Affairs. That guarantee lets lenders offer better pricing with no down payment required and no monthly mortgage insurance. The current VA 30-year rate is 5.250%, well below conventional. The tradeoff is a one-time VA funding fee of 1.25% to 3.3% depending on your service history and down payment, though that fee can be financed into the loan. If you are a veteran or active military member in Houston, the VA loan is almost always the most cost-effective option. See the full comparison at VA Loans Houston.

FHA loans have a lower base rate than conventional, at 5.50% versus 5.875% for conventional. FHA is government-backed through the Federal Housing Administration, which reduces lender risk and brings the rate down. The catch is mortgage insurance. FHA requires 1.75% upfront MIP at closing plus 0.55% annually for the life of the loan for borrowers with less than 10% down. For borrowers with a credit score below 680 or a smaller down payment, FHA is often the right choice. Read more at FHA Loans Houston.

Conventional conforming loans hit the middle ground. At 5.875%, the rate is higher than FHA, but there is no upfront mortgage insurance cost and PMI can be removed once you reach 20% equity. For borrowers with 680 or higher credit and 10% or more down, conventional often comes out cheaper long-term than FHA. See the side-by-side breakdown at FHA vs Conventional Houston and Conventional Loans Houston.

Jumbo loans carry a premium because they exceed the $832,750 conforming limit and cannot be sold to Fannie Mae or Freddie Mac. Lenders retain the risk on their own books, so rates are higher. The current jumbo 30-year rate averages 6.25% nationally. Jumbo programs typically require 10% to 20% down, a 700 or higher credit score, and stronger cash reserves.

DSCR loans are for real estate investors. They qualify on the rental income the property generates rather than your personal income. Current DSCR rates run 5.99% to 7.50% depending on credit score, loan-to-value ratio, the property's DSCR ratio, and whether you want a prepayment penalty. Investors with a DSCR above 1.25 and 25% down can access the lower end of that range.

What Affects Your Mortgage Rate in Houston

Your quoted rate is not the same as the index rate. It is adjusted based on several specific factors in your application.

Credit score is the biggest lever. Lenders apply Loan-Level Price Adjustments set by Fannie Mae and Freddie Mac that shift your rate based on your score and loan-to-value ratio. On a 30-year conventional loan with 20% down, the difference between a 620 credit score and a 780 credit score is approximately 1.25 to 1.50 percentage points in rate. On a $300,000 loan, that difference costs around $216 per month and over $77,000 in total interest over 30 years.

Down payment and LTV directly affect your rate. Moving from 5% down (95% LTV) to 20% down (80% LTV) can reduce your rate by 0.30 to 0.50 percentage points. It also eliminates the need for PMI, which adds 0.5% to 1.5% of your loan balance annually on conventional loans.

Loan type determines the base rate environment. The ordering from lowest to highest is typically VA, FHA, conventional, jumbo, and DSCR.

Property type adds adjustments. Primary residences get the best pricing. Second homes carry a premium of roughly 0.25 to 0.50 percentage points. Investment properties add 0.50 to 0.875 percentage points. Condos carry additional LLPA fees depending on LTV.

Texas-specific note: Texas has no state income tax but has property taxes among the highest in the nation, typically 2% to 3% of home value. Property taxes do not directly affect your interest rate but they increase your total monthly housing cost and affect your debt-to-income ratio, which can indirectly influence the rate you qualify for.

How to Lock In the Best Houston Mortgage Rate

A rate lock is a guarantee from your lender that you will receive a specific interest rate for a set period regardless of what the market does between now and closing.

Standard lock periods run 30 to 45 days and typically carry no added cost. Extended locks of 60 to 90 days are available for new construction or more complex transactions and may cost 0.125% to 0.25% added to the rate.

The decision between locking and floating comes down to your timeline and your read on the market. The general guidance in the current environment: if you are within 30 to 45 days of closing and the rate is at a level that works for your payment, lock it. Rates are near multi-year lows and the consensus forecast does not predict meaningful further declines. Floating longer introduces the risk of a move in the wrong direction.

Float-down options let you capture a lower rate if rates drop during your lock period. This option typically costs 0.50% to 1.00% of the loan amount as a fee. In a declining rate environment it can be worth the cost. Your loan officer should walk you through whether it makes sense given your specific close date and loan amount.

Frequently Asked Questions

Related Resources

• FHA Loans Houston
• VA Loans Houston
• Conventional Loans Houston
• Jumbo Loans Houston
• Refinance Houston
• DSCR Loans Houston
• FHA vs Conventional in Houston