Mortgage Rates in Houston, Texas: 2026 Guide
Current mortgage rates in Houston. 30-year fixed: 7.32%. Median home price: $320,000.
Current Mortgage Rates in Houston
| Loan Type | Rate | APR | Monthly Payment* |
|---|---|---|---|
| 30-Year Fixed | 7.32% | 7.400% | $1,759/mo |
| 15-Year Fixed | 6.68% | 6.750% | $2,255/mo |
| 5/1 ARM | 6.46% | 6.810% | $1,611/mo |
* Based on 20% down. Actual rates vary.
Median Home Prices in Houston
The median home price in Houston is $320,000, below the Texas state median of $345,000. Houston offers some of the most affordable housing among major US cities, with a wide range of options from urban condos downtown to spacious single-family homes in the suburbs.
Cost of Living & Property Taxes
Texas has no state income tax but a higher property tax rate of 1.31%. Annual taxes on a median-priced home: $4,192 ($349/mo). The no-income-tax advantage can save homeowners thousands annually compared to states with income taxes.
Houston Market Insights
Houston’s housing market benefits from a diverse economy centered on energy, healthcare, and aerospace. The city offers relatively affordable housing compared to other major metros, with a median price well below the national average for large cities. The no-state-income-tax advantage makes homeownership more affordable despite higher property tax rates. New home construction in suburbs like Katy, Sugar Land, and The Woodlands continues to provide ample inventory.