The average rate on a 30-year fixed mortgage has climbed above 7% for the first time in more than a year.
Mortgage rates had fallen to around 6% in late February before reversing course after the U.S. and Israel began the war with Iran.
The latest increase included a 10-basis-point jump from Wednesday, as concerns about the duration of the conflict contributed to higher U.S. government bond yields and oil prices above $106 per barrel.
Higher borrowing costs continue to pressure housing activity, with existing-home sales declining 2% month over month in August to a seasonally adjusted annual rate of 3.98 million, according to the National Association of REALTORS®.
August’s decline pushed existing-home sales to their lowest level in more than a year, even as housing inventory increased.
Takeaway: High interest rates = fewer home sales, even with more inventory on the market.
In Annoura Realty news, things were extremely busy. Susan spent three days in Galveston for her HAR Strategic Leadership Conference, then returned into a whirlwind of showings. Repeat clients Marybeth and Ken are on the hunt for a home with more room and they love being on the water. So, together we checked out homes in Bayou Vista, Omega Bay, and right back to their own street in Grand Cay Harbour. Right now we are considering a home with a spectacular view of the bay. Meanwhile, Chuck and Esther, congratulations to you! The sister in law of our beloved Hiroko Kobayashi closed on their Firethorne West home on Friday. The seller took immaculate care of the home and it was updated with lots of bells and whistles from the fireplace to the stair rails. Susan negotiated lots of extras including a state of the art refrigerator with internet and Youtube, an air hockey table, foosball table, and home theater with projection, screen, and reclining theater sofa seats! Coming up tomorrow we are slated to close on Orchard Mountain, and on the same day, we plan to bring to market the Parkers current canal front home as soon as professional pictures come back. On the leasing side of things, Mariko wrapped up our JAXA client’s lease in Clear Lake as well as a repeat Inpex client in Memorial. Susan is working with a new Japanese doctor who will work at MD Anderson as well as a new admin for the Japanese Consulate. Koh and Susan both worked with Kuraray expats, one sizing up to a bigger home, and one new family coming for the first time. On the horizon, we have several new folks headed our way and while our Olive Green listing was withdrawn from the market to get a new roof put on, our Riverview listing is still available and just reduced in price. If you know anyone looking for a home near Westchase, check this one out: www.har.com/85297820. Thank you to everyone who has trusted us with their real estate needs!
In Annoura Realty news, we had a very very busy last two weeks. First of all, Mariko handled our Hitachi client, helping him move into his new home so congratulations to Mr. Yanase. Susan’s Tokio Marine client, Yuki, settled into his new highrise apartment last week so congratulations to him! Our newest Daiwa Energy and Infrastructure client, Mr. Yamaguchi arrived in Houston with his family and we were so happy they came. Mitsubishi’s repeat client, Mr. Nose, decided to move from an apartment to a house, so Susan was super happy to be able to help him. It was fun house hunting with both Mr. AND Mrs. Nose this time, and one memorable happening was that we saw a SKUNK in one of the backyards! It was really perfect that they found their favorite house in a gated community. On the sale front, David and Lacey closed on their waterfront home in Bayou Vista. Very thankful to Mariko and Laura for being present at the title company in Galveston while Susan was on a business trip to Austin. We also closed on one of our listings in LaMarque last week. Josh and Meagan got a cash offer and closed on their home in 2 weeks! There are several new buyers on the horizon, most that are referrals from past clients and friends. We are expecting a busy May and have our pulse on the market now. It’s been more of a buyer’s market these past few months but with more buyers coming out to buy, competition may help the sellers.
There’s some interesting data that came out from the Houston Chronicle about the current Houston real estate market. Its getting more and more affordable to buy a home in Houston. If you’re thinking about buying, now might be a good time. Call us!
Houston’s housing market is the most affordable it’s been in years, new report finds Houston ChronicleHousing affordability in the Greater Houston area reached its strongest level in nearly four years during the fourth quarter of 2025, as both home prices and mortgage rates moderated.Approximately 44% of local households were able to afford a median-priced home, marking the highest affordability share since early 2022, according to the Houston Association of Realtors’ quarterly report.HAR Chair Theresa Hill noted that, after several difficult years for buyers, conditions are beginning to shift in a more favorable direction.The improvement represents a four-percentage-point increase year over year, driven largely by declining borrowing costs and slight price adjustments.The average 30-year mortgage rate fell to 6.15% by the end of 2025, down from 6.91% at the start of the year, with rates recently hovering near 6.1% — close to a three-year low.The region’s median home price dipped 0.9% year over year to $337,200 in the fourth quarter, reflecting expanded inventory and increased negotiating power for buyers.With roughly 40,000 active listings across single-family homes, townhomes and condominiums as of November, Houston remains one of the most well-supplied major metro markets in the country. Buyers in November paid more than 7% below list price on average, the lowest list-to-sale ratio in at least 25 years.To purchase a median-priced home in the fourth quarter, a household needed an annual income of about $91,200 — down 3.4% from a year earlier — compared to the region’s median household income of $81,417, according to recent census data.
Homebuyers in the U.S. are canceling home purchase contracts at the highest rate since 2017, according to Inman News. In December, about 40,000 purchase agreements were canceled, which is roughly 16.9% of all home sales contracts and a record for that month. This is happening even though the average 30-year fixed mortgage rate dropped to 6.09%, its lowest level in three years. Experts say the housing market is now a strong buyer’s market, giving buyers more power and making them more willing to walk away from deals. High home prices and more homes for sale have made buyers more selective, since sellers now outnumber buyers by a large margin. Redfin also noted that buyers often cancel contracts after inspections, sometimes using inspection issues as a reason even if they want to leave for other reasons. Atlanta had the highest cancellation rate at 22.5% in December, followed by cities like Jacksonville, San Antonio, Cleveland, and Tampa.
