Interest rates shape what a monthly payment looks like as much as the price of the home does. Houston Association of REALTORS® (HAR) includes Freddie Mac’s average 30-year fixed mortgage rate in each monthly housing update, along with commentary on affordability in Houston.
30-year fixed rate by month, 2026
| Report month | Average rate (Freddie Mac) | Same month a year earlier |
|---|---|---|
| June 2026 | 6.49% | 6.82% |
| July 2026 | 6.54% | 6.72% |
| August 2026 | 6.67% | 6.59% |
Source: HAR monthly housing updates, citing Freddie Mac.
What stands out
- Rates were lower than a year earlier in June and July, but August’s average was slightly higher than in August 2025.
- Rates rose from 6.49% in June to 6.67% in August.
- In its July report, HAR noted that Houston’s affordability improved year over year in 21 of the previous 24 months, compared with 15 of 24 months nationally.
- HAR also estimated that the July rate decline from a year earlier saves a buyer of a median-priced Houston home with 20% down more than $250 per year in principal and interest.
What a rate change can do to a payment: an illustration
To show the effect, we calculated the principal and interest payment on a $330,000 home, the single-family median price HAR reported for August 2026, with 20% down ($264,000 borrowed) on a 30-year fixed loan:
| Rate | Monthly principal and interest |
|---|---|
| 6.49% (June average) | about $1,667 |
| 6.54% (July average) | about $1,676 |
| 6.67% (August average) | about $1,698 |
This is KW Memorial’s own illustration, not a HAR figure. It excludes property taxes, insurance, HOA dues and mortgage insurance, and it is not a loan offer. Your actual rate depends on your lender, credit and loan type.
Between the lowest and highest rate above, the payment difference on this example is about $31 per month. Rates matter, but so do price, down payment and the length of time you plan to own the home.
Practical steps
- Talk with a lender early to see what you would qualify for and what it would cost.
- Compare more than one loan estimate, since rates and fees vary.
- Ask whether paying points makes sense for how long you plan to stay.
- Use our home tools to estimate payments at different prices and rates.
Need a local professional? Our Preferred Partners page is a good place to start, and you are always free to choose the provider that suits you.
Source: Houston Association of REALTORS® (HAR) monthly housing updates for the Greater Houston area (June 2026 Housing Market Update, published July 8, 2026; July 2026 Housing Market Update, published August 12, 2026; August 2026 Housing Market Update, published September 9, 2026). Rates are Freddie Mac’s weekly averages as cited by HAR. Figures describe the overall Houston market, not any single neighborhood or home. Past results do not predict future performance.
See our market reports for more, read how to read a Houston market report, or talk with a Memorial advisor about your plans.
