Mortgage Rates Hit 6.85% — Highest Level in Over a Year
Mortgage rates just hit their highest level in over a year. Rates climbed to 6.85% this week. That’s the first time in 2026 they’ve been higher than last year. The Iran conflict is pushing oil prices up. That’s driving bond yields higher too. The 10-year yield hit 4.71%. All of these are yearly highs. The Fed meets next week. There’s a 36% chance of a rate hike. According to a recent HousingWire report on rate movement, this news changes the outlook for buyers. For the Houston housing market, higher rates mean higher monthly costs. A 6.85% rate on a $300,000 loan adds about $150 more per month than last year’s rates. You’ll want to check current Houston mortgage rates if you’re planning to buy. Lock in a rate when you’re ready. Drops can happen fast if the conflict cools. But for now, the trend is up. Know your budget and act when the time feels right.
So higher rates are testing buyers. But there’s some good news on the loan front that helps balance things out.
FHA Defaults Drop 15% — Good News for First-Time Buyers
Here’s some good news for first-time buyers in the Houston housing market. New FHA mortgage defaults dropped 15% from last year. That’s the biggest drop in over four years. According to data from ICE’s latest First Look Mortgage Performance report, overall mortgage performance stayed strong. The total delinquency rate was 3.55%. That’s well below the 4.16% level from June 2019. Serious delinquencies also fell to 570,000. That’s their lowest level in six months. These trends are good for buyers. FHA loans let you put down as little as 3.5%. They’re a top choice for many buyers. Fewer defaults mean the program stays healthy. That keeps FHA loans in Houston open and accessible. It also means lenders feel good about working with FHA borrowers. If you have questions about FHA options, Bayway Mortgage can walk you through the process.
Nationally, the picture is mixed — rates are up but loan health is solid. Now let’s look at what’s happening right here in Houston.
Houston Leads Texas in HOA Fees — What Buyers Should Know
If you’re looking at homes in Houston, here’s a cost you need to know about. More than 55% of Houston homeowners pay HOA fees. And those costs are climbing fast. According to a recent Houston Business Journal report, national HOA fees have jumped 25% in six years. Houston leads all major Texas metros in these costs. The Houston housing market has lots of planned communities. Places like Katy and Sugar Land are full of HOA neighborhoods. Those fees cover parks, pools, and common area landscaping. But they add to your monthly costs. A $200 monthly HOA fee adds $2,400 a year to your housing bill. Always include HOA fees in your budget. Ask your real estate agent for the exact HOA amount before you make an offer. That way you avoid surprises after you move in.
HOA costs are just one piece of the puzzle. The bigger story is how many new people are moving to Texas right now.
Texas Keeps Drawing New Residents — Houston Is a Big Winner
People are leaving expensive coastal cities and heading to Texas. And Houston is one of the top spots. According to a recent HousingWire analysis of migration patterns, Texas is attracting working-age adults, young families, and college-educated households. The state has added millions of new residents since 2020. Most newcomers are in their early 30s and ready to buy homes. That’s great for the Houston housing market. Places like Pearland and Cypress are seeing lots of new construction. Builders are putting up new homes to meet demand. That gives you more options when you shop. More supply is a good thing for buyers. It keeps prices from rising too fast. And it means you can find a home that fits your needs.
All this talk of growth has us looking forward to summer fun in the Houston area.
Fun Fact: Galveston Island Is a Quick Summer Escape
Did you know Galveston Island is just an hour from downtown Houston? It’s a perfect escape from the summer heat. You’ll find miles of beaches, great seafood spots, and fun for the whole family. Moody Gardens and the historic Strand district are big hits. It’s one of the best parts of living in the Houston area.
