How Texas Real Estate Adapts to Federal Rate Changes

The Federal Reserve raised interest rates by 25 basis points to about 3.75%, impacting Texas real estate amid an affordability crisis. Around 40% of Houston households can currently afford homes, with median prices near $330,000. Mortgage rates have risen to 6.97%, the highest since May 2025. Buyers are advised to adjust budgets, consider financing options like adjustable-rate mortgages or seller financing, and work with realtors for smoother transactions.