Federal interest rate and Texas housing: On September 17, 2025, the Federal Reserve cut interest rates by 0.25%, bringing the new range to 4%–4.25%. But Texas realtors say this small drop may not make it easier to buy a home right now.
Why the Rate Cut Might Not Help
- High home prices: Houses that sold for $300,000 a few years ago now often cost $600,000.
- Mortgage rates: Even with the Fed cutting rates, actual mortgage rates are still around 6%.
- Seller’s market: There are more buyers than homes, so prices keep rising.
Realtor Advice
Realtor Sara Hamway, an affordable housing advocate, says:
- Jobs and pay matter more than rates. People need higher wages to afford homes.
- Don’t wait for lower rates. Lenders may not pass on the Fed’s cuts to mortgage rates.
- Act if you can buy now. “Let it light a fire under you. Use those sellers to your advantage,” Hamway says.
Potential Market Changes
- If rates drop two more times this year as the Fed suggested, more buyers might rush in.
- This could drive home prices even higher in Texas.
Quick Takeaway: A tiny interest rate cut won’t fix housing affordability in Texas. The best strategy is to focus on your budget, your job, and act smart if you’re ready to buy.
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