Houston Mortgage Rates Hit 3-Year Low: Should You Move Now or Wait?

Updated: September 2025

Short answer: As of this week, mortgage rates are sitting near the low 6s. The lowest level in almost three years after a sharp drop that began on Sept 5. If today’s payment works and you find the right home, moving sooner makes sense because even small additional rate dips tend to pull more buyers back into the market, pushing competition and prices higher. 

If you’re very payment‑sensitive, watch for micro‑dips and do the prep work now so you are ready to act when it is time. 

At the end of the day, the right time is when it is right for you! 

If you want me to run the numbers for your situation and budget, reach out at 832.594.1265 or [email protected]. No Pressure. Just the information you need to decide if now feels right for you.

To help you decide, read on to find out:

💸  What your monthly payment looks like at today’s Houston rates, with real examples

🏡  What the rate drop means for Houston, Katy, and Fulshear buyers and sellers right now

⏱️  Move now or wait, which path likely wins once competition picks up

✅  My take on what buyers and sellers should do next, based on the current local real estate market

Houston Mortgage Rate Fast Facts (Katy & Fulshear • Sept 2025)

• 30-year fixed: about 6.1–6.3% in mid‑September 2025
• New low: lowest level in nearly three years, which is exactly why I recorded this video and wrote this blog
• Big drop: biggest one‑day decline in over a year on Sept 5
• Why it moved: two softer jobs reports in a row increased confidence that growth is cooling in a controlled way
• Local edge: inventory throughout Houston, Katy, and Fulshear is the best it has been in years, which gives buyers real options

▶️ Watch: Is it finally the right time to move in Houston, Katy, & Fulshear?

Houston mortgage rates just dropped. Should you move now or wait? Here’s the real talk for Katy, Fulshear, and Greater Houston.

Why Houston Mortgage Rates Dropped in Sept 2025 (and Where We Are This Week)

On Sept 5, 2025, mortgage rates took a clear step down after a second softer-than-expected jobs report. They’ve eased a bit more this week, and the average 30-year fixed is now in the low 6s… the lowest since late 2022. 

Translation: payments are finally lighter, not because the market is crashing, but because the pressure cooled enough to help buyers.

Jenny’s Take

This is exactly the kind of move my clients in Houston, Katy, and Fulshear have been waiting for. It is not a free fall, it is a release valve. Payments are substantially better than the past couple of years, and you have enough homes on the market to choose from to shop smart and not settle.

What does the drop mean for your monthly payment?

How much does the recent rate drop save you in real life? Let’s take a look!

If you are financing $600,000:

• Last year at 7.5% = $4,195/mo
• Today at ~6.13% = $3,650/mo 

That’s $545 bucks PER MONTH less.

*Estimates for P&I only. Actual payments vary by taxes, insurance, credit score, debt‑to‑income, and program.

Jenny’s Take

These are not tiny changes. Over 5 years, even $300/month is $18,000 in real cash flow. If the right house appears and today’s payment works, you do not need to wait for a unicorn rate.

For buyers: Get a fresh quote and ask for a “what‑if” worksheet at 6.25%, 6.00%, and 5.875% so you know your comfort zone.

Should I move now or wait for rates to drop further?

Reality check: Many forecasts expect rates to drift in the mid‑6s over the next 12 months, with wiggles along the way. Could we see high‑5s if the economy cools faster? Possibly. Could rates bounce back toward 7% if inflation re‑accelerates? Also possible. 

Expert Predictions: What’s the Crystal Ball Saying?

Here is a look at what some of the big housing and economic groups are saying. It’s not a perfect science, but here is the consensus:

What to watch next (30–60 days)

• Inflation prints & jobs reports: softer data usually supports lower rates.
• Fed tone: hints at future cuts can nudge mortgage sentiment.
• 10-year Treasury & mortgage spread: a narrowing spread can help rates even if Treasuries stall.
• Local buyer activity: if showings and pendings jump, expect faster competition when the right home hits.

Jenny’s Take

The magic number most buyers seem to be watching for is 6%. And it’s not just a psychological benchmark; it has a real impact.

That is A LOT of pent-up demand waiting on the sidelines. Which raises an important question: Does it make sense to wait for lower interest rates?

Here’s the catch: If rates tick down again, more buyers will jump back in, which means more competition and higher home prices. Waiting might lower your rate a touch, but it’ll likely give it back in the price you pay for your next Katy, Fulshear, or Houston area home. 

Here is what I am telling my friends and clients:

• Take advantage of this window: If today’s payment works and you find a home that fits your life, move on it.
• Assess your current home’s equity: Have a Realtor ( 🙋‍♀️) take a look at your current home’s equity. You likely have more than you think, which plays a huge part in affordability for your next home.
• If you are payment‑sensitive and flexible on timing, watch the next dip, but have pre‑approval and tours ready so you are not shopping against a stampede.

What about the local Houston, Katy, and Fulshear real estate market right now?

Katy, Fulshear, Greater Houston are still in healthy‑active mode. Inventory remains the highest it has been in years, which is rare breathing room and piece of mind that you don’t have to settle for buyers. Pricing strength has held up in Katy and Houston, luxury activity is healthy, and Fulshear continues to benefit from strong growth and new‑home options.

Jenny’s Take

This is the combination you hope for as a move‑up buyer: more choice, better payments than midsummer, and steady prices that protect your equity.

For buyers: Shortlist neighborhoods now, review comps, and be ready to write a clean offer quickly.

For sellers: Presentation and pricing strategy matter. With more listings live, you need to be the obvious choice.

Deciding whether now is the time to make a move boils down to this…

• Rates finally broke lower and are sitting near the low 6s, which meaningfully improves payments.
• Payment savings are real: on the average size loan, the drop can save hundreds per month.
• Waiting for perfection can backfire if lower rates pull more buyers off the sidelines.
• Locally, buyers have more homes to choose from than they have had in years, while prices in core areas have stayed resilient.
• Your move should follow your life plan first, then your rate plan.

Your Custom Data-Backed Strategy

If you want the numbers for your situation and a local game plan that fits your life, text or call 832.594.1265 or email [email protected]. We will figure out whether now is right or if it makes more sense to wait. No pressure, just clarity. 

The Most Common Questions I get as a Katy and Fulshear area Realtor

Is Houston a buyers or sellers market right now?
Locally, buyers have the most choice they have had in years, which is closer to balanced conditions. Well‑priced and prepped homes still sell quickly.

How much does a 1.5% rate drop save on a mortgage?
On a $600k loan, savings are a little over $500 per month. Exact numbers depend on your terms.

Should I wait for rates to hit the 5s?
Maybe, but there is no guarantee. If rates dip, more buyers usually jump in, which can tighten competition and firm up prices.

Are prices still rising in Katy and Houston?
Yes, prices have remained resilient in the most sought-after areas of Katy, Fulshear, and Houston, even as inventory improved. There hasn’t been a dramatic year-over-year increase, but they haven’t dropped after their historic pandemic-induced surge. That is why timing and strategy matter more than ever.

Written by Jenny Becker, top‑producing Realtor serving Katy, Fulshear, and Greater Houston. Questions about your home or next move? Call or text 832.594.1265.