Houston's mortgage rate eased to 7.32 percent the week of October 22, down from 7.40 percent the week before, but still well above the 6.27 percent average from a year earlier. HAR's September report showed single-family home sales down 5.7 percent year over year, while the median price held flat at $325,000. Rates, not prices, are still the obstacle.
We watch these numbers because every week a buyer sits on the fence waiting for rates to move is a week of carrying costs for somebody, and clients ask us constantly whether now is a reasonable time to start. Here is where things actually stand.
Rates: a small step down
Freddie Mac's Primary Mortgage Market Survey put the 30-year fixed rate at 7.40 percent on October 15, unchanged from the week before, then at 7.32 percent on October 22. A year earlier, in October 2025, the rate averaged 6.27 percent. So even with the recent dip, financing a home costs meaningfully more than it did twelve months ago, and one down week is not a trend yet.
What HAR's September report showed
The Houston Association of Realtors' monthly report for September 2026 put single-family home sales at 7,030 across Greater Houston, down 5.7 percent from September 2025. The single-family median price held close to flat at $325,000. Active listings climbed to 40,192, up from 37,821 a year earlier, so buyers have more on the market to choose from even as fewer deals closed.
HAR tied part of the slowdown directly to financing rather than price. The report estimated the monthly principal and interest payment on a median-priced home with 20 percent down at $1,705.41, up from $1,622.29 a year earlier, a jump of about $83 a month even though the sale price itself barely moved. That is the rate doing the work, not the home getting more expensive.
Materials and labor: still where they were
On the building side, nothing has reversed. Construction materials nationally remain up roughly 14 percent against the 2024 average in Bureau of Labor Statistics data, with copper and steel still the biggest movers, and residential labor costs are up about 5 percent over the same stretch. Those figures have not meaningfully shifted since our last update; we track them live in the cost estimator so the numbers on your plan stay current.
What this means if you are planning a build
A slower resale market with flat prices is not bad news if you are building new instead of buying existing. It means less competition for lots and for the subs and crews who would otherwise be stretched thin on resale closings, and a selection period where you are not racing another buyer's financing deadline. The rate is still the biggest line item working against you, so locking your plan and your numbers now protects you from the next move, whichever way it goes.
If you want to see where a specific plan and lot land today, run the cost estimator for an instant range, or look at our cost guide for the full breakdown behind it. For custom homes, or to put real numbers next to your own plans, send us your lot and your plans and we will come back with a straight answer. We publish one of these updates every few weeks so the picture stays current.
Sources: Freddie Mac Primary Mortgage Market Survey, 30-year fixed rate, releases of October 15 and October 22, 2026 (freddiemac.com/pmms); Houston Association of Realtors Multiple Listing Service monthly report, September 2026 (har.com); U.S. Bureau of Labor Statistics, Producer Price Index for construction materials and residential building average hourly earnings, latest data versus the 2024 annual average (bls.gov).