Mortgage Rates Near 7% as North Texas Sales Slow

Rising mortgage rates add pressure to affordability as North Texas sales slow and home prices hold steady.

Mortgage rates are approaching 7% again, adding another challenge for buyers and sellers navigating an already slower North Texas housing market.

Freddie Mac’s latest survey put the average 30-year fixed mortgage rate at 6.95% for the week ending September 17, up from 6.76% the previous week.

The increase comes alongside the Federal Reserve’s first rate hike since 2023. On September 16, policymakers raised the federal funds target range by a quarter of a percentage point to 3.75%–4.00%, citing inflation that remains above the Fed’s 2% goal.

Freddie Mac’s weekly average includes several days before that announcement, so it does not capture the full market response. The coming weeks will provide a clearer picture of whether mortgage rates remain near this level.

Affordability Remains Under Pressure

For North Texas, renewed rate pressure comes as the market continues to adjust to slower sales and more measured buyer activity.

MetroTex’s latest market update reported 7,329 single-family home sales, down 5% from a year earlier, while the median sales price held steady at $390,000. Inventory stood at 4.3 months.

Those figures predate this week’s Fed decision, but they show the conditions into which higher borrowing costs are arriving: prices have remained relatively stable even as sales have slowed.

For financed buyers, that combination can tighten purchasing power. More choice in available homes does not necessarily translate into a more affordable monthly payment.

Pricing Faces Another Test

Sellers are already operating in a market that requires closer attention to the competition. The same MetroTex report showed homes spending an average of 58 days on market, with sellers receiving 94.8% of their original list price.

If mortgage rates remain elevated, buyers may have less flexibility to stretch for a home. That could place additional pressure on pricing and make concessions more relevant in negotiations, depending on the property and its competition.

What to Watch Next

The Fed’s decision underscores that inflation remains a concern for policymakers. Mortgage rates will continue to respond to economic data and investor expectations, leaving the timing of any sustained relief unclear.

Locally, upcoming pending-sales figures, price reductions and concessions will help show whether buyers are adjusting to higher rates or pulling back. Those changes will provide a more useful measure of the impact on North Texas transactions as the fall market unfolds.