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While Freddie Mac reports the average U.S. mortgage interest rate for a fixed 30-year loan has hit 7%, an executive at San Antonio-based Frost Bank believes it will not have a major impact on lenders or the housing market.
Beverly Hankinson, a vice president for Frost Mortgage, said the increase may cause some to "pause" before entering the Texas housing market, but she believes the market will continue to be stable. She said the potential home buyers she has met with are mostly concerned about a home's overall affordability.
"It's that intersection of what works for my family and what my budget can afford. You know, what will my payment be?"
And Texas homes remain more affordable than homes in much of the nation, Hankinson said. She said there are lots of homes on the market in the Lone Star State and about 1,000 people moving into Texas every day. Those are two factors that bode well for the state's housing market.
Hankinson said once a potential buyer gets a firm mortgage interest rate from a lender, they should still shop it around with other lenders.
"And have them do that apples-to-apples comparison and if they're ... a trustworthy and honest lender with integrity, they're going to tell you if somebody else has a better deal for you," she said.
She said just because the average mortgage interest rate has hit 7% does not mean lenders will increase theirs as they try to remain competitive with one another.
The San Antonio Board of Realtors echoed many of Hankinson's points. Ed Zapata, the chair of the board, said potential homebuyers have to take a lot of factors into account besides interest rates.
"While mortgage rates around 7% certainly impact purchasing power, the bigger issue for San Antonio buyers continues to be overall affordability, including home prices, property taxes and insurance," he said. "In this environment, working with a realtor who understands the local market can help buyers evaluate their options and make informed decisions."
September's home sales figures for San Antonio will be out soon, but August figures for the local home sales market were stronger than those of the state and nation as a whole. Home sales in the San Antonio area rose by 4% in August, compared to the same month in 2025.
Statewide, home sales were down by more than 4% in August. Nationally, during the month of August, existing-home sales decreased by 2% month-over-month and were down 1.2% year-over-year, according to the National Association of Realtors.
