Tomo Mortgage

What's a low, high, and average mortgage rate in TX?

A good rate for a primary, single-family home in for , and credit score is:

5.95% - 6.1%

Histogram showing 3 data points from 5.95% to 6.54%. Use Tab to navigate between segments, and Enter to select a bar.

5.95%6.1%6.25%6.39%6.54%

TrueRatefound 120 lenders for you

Rates updated Jan 8, 2026

Insights

Negotiate everything—rates, fees, and terms are not set in stone.

Portrait of George Robinson, TrueRate Data ScientistGeorge RobinsonTrueRate Data Scientist

Lenders with low rates in TX

TrueRate analyzed the rates lenders actually gave to buyers for the last three years and found only 7 lenders likely to get you a good deal.

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Insights

Negotiate everything—rates, fees, and terms are not set in stone.

Portrait of George Robinson, TrueRate Data ScientistGeorge RobinsonTrueRate Data Scientist

Lenders in TX likely to have high rates

We don’t accept advertising, so you can get the real lender story. TrueRate looked at 120 lenders and found that these 7 are likely to offer you a high rate.

LenderLender fees
Customer reviews
Mixed reviewsMixed reviews
Mixed reviewsMixed reviews
Limited reviewsLimited reviews
Mixed reviewsMixed reviews
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Insights

Whether a lender has high margins or is simply inefficient and passing their costs on to you, the result is the same—you’ll likely end up paying more for your home. Our data shows that if you choose these lenders you will likely regret it.

Portrait of George Robinson, TrueRate Data ScientistGeorge RobinsonTrueRate Data Scientist

Lenders with average rates in TX

You deserve better than what these 106 lenders historically provide.

Don’t let lenders pull a fast one on you

Learn how really low rates often come with hidden fees. Drag the slider to see how rates and fees are connected.

5.95% - 6.1%

Insights

TrueRate compares lenders based on their 0 points or par rate. You should use this rate when comparing lenders.
Portrait of James McTernan, Tomo Mortgage Loan AdvisorInsights by James McTernanTomo Mortgage Loan Advisor - NMLS #1112719

TrueRate report

Buying a home shouldn’t feel impossible—see what’s driving buyer stress in 2025.

What is TrueRate by Tomo Mortgage?

TrueRate is a tool for homebuyers, created by Tomo Mortgage. It uses AI and analytical models to show you what a fair mortgage rate really looks like—your “true rate”—based on your unique financial situation and real market conditions. It strips out all the bait-and-switch pricing you see all over the internet, such as rates advertised with big point fees hiding in the fine print.

Instead of giving you a one-size-fits-all estimate, TrueRate calculates what rate you should be looking for that day, using the same kinds of data that lenders themselves rely on to provide their own rate information. We’re just making it all public for the first time. You’ll be able to see whether an interest rate offered by a bank, credit union, or mortgage company is low, average, or too high—before you agree to anything.

We believe in transparency. Here’s how we crunched the numbers.

See our TrueRate methodology

Average Mortgage Rates: 6.1% - 6.35%

By Will Begeny, TrueRate Editor, and George Robinson, Chief Data Scientist

As of January 8, 2026, an average mortgage rate—or, to be a little more precise, a median rate for a 30-year fixed-rate conventional mortgage on a primary home—falls between 6.1% and 6.35%.

If you’re comparing different mortgage lenders, trying to find the lowest interest rates, you’ll be looking for offers below 6.1%. Few lenders nationwide are offering homebuyers a “good” rate today, meaning their interest rate is better than what 70% of lenders are offering to people with the same financial scenario.

This is based on an analysis from TrueRate, which uses hundreds of thousands of home loans across the U.S. to calculate what rates are good, bad, and average for a specific buyer’s scenario.

Frequently asked questions

Let's take a common home buying scenario. You're buying a $393,000 single-family home with 20% down and a 730 credit score, and looking for a 30-year fixed conventional loan.

Here's what your principal and interest would look like based on today's best rates:

Row headersLender ALender BLender C
Offered rateLow rate6.622%Average rate6.752%High rate6.866%
Monthly P&I payment$2,013$2,040$2,063
Costs after 10 years$241,502$244,753$247,619
Savings after 10 years$6,117$2,866

Rates for illustrative purposes only. Monthly payments reflect principal and interest only. Taxes, insurance, and other costs not included.

You might see some ultra-low rates advertised online, but many of these are misleading. Those teaser rates often come with hidden fees, like:

The most honest way to compare offers? Look for a rate where the APR (annual percentage rate) is nearly equal to the interest rate — what's often called a "par rate". That's the most realistic number to judge true affordability.

Mortgage interest rates are influenced by a wide range of economic factors—from inflation and job growth to Federal Reserve policy. So, will rates fall in 2026? According to Tomo's weekly mortgage rate forecast, it's complicated—but not impossible.

As Emmanuel Santo-Donato, Tomo's Chief Market Analyst, explains, we're in a "watch-and-wait" phase where data like inflation reports, unemployment numbers, and the Fed's policy meetings play an outsized role in driving mortgage trends. When job growth cools or inflation slows faster than expected, that typically nudges rates lower. On the other hand, any signs of overheating in the economy—or global uncertainty—can push them back up.

For ongoing updates, you can subscribe to the Track Tomo Mortgage Rates tool, which tracks real changes in mortgage rates tailored to your loan scenario—so you'll know if it's time to lock in or wait.

Mortgage fees are one of the most misunderstood parts of the home loan process—and they can cost you thousands of dollars if you're not careful.

Most lenders tack on charges like origination fees, underwriting fees, and processing fees, often burying them in the fine print. At Tomo, we believe that's unnecessary. In fact, we've built our model around zero lender fees—because getting a mortgage shouldn't feel like leaving a tip just for being allowed to borrow money.

According to Tomo's mortgage lender fee analysis, the median lender fee for a conventional 30-year mortgage at major banks is $1,360. But fees can climb much higher:

  • $3,000–$6,000 is common
  • $10,000+ isn't unheard of, especially from brokers or lenders using aggressive pricing models

Mortgage rates have seen dramatic swings in the last several years—and understanding this history can help you make better decisions today.

Here's a look at average 30-year fixed mortgage rates in the U.S., based on public data from sources like Freddie Mac and analysis from the Tomo TrueRate:

Year / Avg 30-year fixed rate

YearAvg 30-year fixed rateWhat was happening?
2018 / ~4.54%2018~4.54%The Federal Reserve raised interest rates several times in 2018, leading to higher mortgage rates.
2019 / ~3.94%2019~3.94%The Fed began cutting rates again due to slower global growth, leading to a slight drop in mortgage rates.
2020 / ~3.11%2020~3.11%COVID-19 hit. Rates fell sharply as the Fed slashed rates and injected liquidity into the market.
2021 / ~2.96%2021~2.96%Record lows. Borrowers locked in the cheapest mortgages in history during this period.
2022 / ~5.34%2022~5.34%Inflation surged. The Fed hiked interest rates aggressively, pushing mortgage rates past 6% by year-end.
2023 / ~6.80%2023~6.80%Rates remained high due to persistent inflation and Fed tightening. Some volatility emerged from recession fears.
2024 / ~6.72%2024~6.72%Rates stabilized slightly as inflation eased, though affordability remained a challenge.
2025 / ~6.35%2025~6.35%As of today, average mortgage interest rates for a 30-year fixed-rate primary mortgage hover between 6.35% and 7.04%.

Tomo's TrueRate data science team tracks millions of real loan offers daily to understand not just what rates are doing — but why. With rates still high by historical standards, knowing what a good or average mortgage rate looks like for your specific scenario is more important than ever.

Texas is a great place for home buyers

Thinking about buying a home in Texas? You might be in luck. Mortgage interest rates here are currently lower than in many other states, which could make owning a home—maybe even that spacious Texas dream house—much more affordable.

Over the past five years, interest rates in Texas have seen some dramatic changes. In 2019, rates were relatively stable, averaging around 4% for a 30-year fixed mortgage. It was a solid time to buy or refinance.

Then came 2020 and the pandemic. In response to the economic uncertainty, the Federal Reserve lowered interest rates to historic lows. By mid-2020 and into 2021, mortgage rates in Texas dropped to around 2.5% to 3%. Homebuyers jumped at the opportunity—refinancing and purchasing surged while borrowing costs were unusually low.

By late 2021 and into 2022, however, rates began to rise again. The Fed, aiming to slow inflation, increased interest rates. By 2022, Texas mortgage rates climbed to around 5% to 6%, and in 2023, some even reached 7%, depending on the lender and your credit profile.

Even with these increases, Texas still compares favorably to many other states. Home prices remain relatively affordable, especially when you factor in the state’s lower cost of living and the lack of a state income tax. Those benefits help offset some of the pressure from higher borrowing costs.

All in all, Texas has remained a strong option for homebuyers over the past several years. With improving interest rates and the state’s overall affordability, now could be a great time to start looking for a home in the Lone Star State.