San Antonio, Texas, February 6, 2026
San Antonio’s housing market shows resilience as the average U.S. long-term mortgage rate hovers around 6%. Despite slight increases, buyers enjoy better negotiating power with more inventory. Economic factors, including the Fed’s interest rate policies, continue to influence mortgage trends, though the housing market remains subdued due to elevated home prices and ongoing shortages. With expectations of stability in mortgage rates, the outlook for San Antonio’s real estate market is cautiously optimistic.
San Antonio, Texas
San Antonio’s housing market remains steady as the average U.S. long-term mortgage rate holds near 6%.
The benchmark 30-year fixed-rate mortgage rate edged up to 6.11% this week, essentially unchanged from the previous week’s rate of 6.1%, according to Freddie Mac. A year ago, the rate averaged 6.89%. This slight increase follows a recent dip to 6.06%, the lowest level in over three years. Borrowing costs on 15-year fixed-rate mortgages also inched up to 5.5% from 5.49% last week, down from 6.05% a year ago.
Mortgage rates are influenced by several factors, including the Federal Reserve’s interest rate policies and bond market investors’ expectations for the economy and inflation. They generally follow the trajectory of the 10-year Treasury yield, which was at 4.21%.
Despite a federal pause in rate cuts following previous reductions to support the job market, the housing market remains subdued due to a combination of higher rates, soaring home prices, and a persistent housing shortage. Since 2022, home sales have been depressed, though a dip in rates last summer spurred a modest rebound in late 2025. Buyers presently face less competition and greater inventory, giving them more negotiating power, with nearly two-thirds of buyers last year paying below list price. Economists forecast mortgage rates will stay near 6% in the coming months.
Factors Influencing Mortgage Rates
Mortgage rates are dictated by a variety of complex factors. Key among these are the Federal Reserve’s interest rate policies, which directly impact the borrowing costs. Additionally, bond market investors’ expectations regarding economic performance and inflation also play a significant role in determining these rates.
Current Housing Market Dynamics
The housing market in San Antonio is impacted by a combination of high mortgage rates and soaring home prices, causing a generally subdued atmosphere. While home sales have not fully recuperated since 2022, the slight decline in mortgage rates observed last summer offered a brief respite and modest improvement in late 2025.
Buyer’s Market of 2025
Current conditions favor homebuyers. With diminished competition and increased inventory, buyers are finding themselves in a more advantageous negotiating position. In fact, almost two-thirds of buyers last year managed to purchase homes at prices below the listing price. Such dynamics can encourage more potential buyers to consider entering the market.
Looking Ahead
Economists are cautiously optimistic, predicting that mortgage rates will stabilize around the 6% mark in the upcoming months. This steadiness could provide clearer visibility for both buyers and sellers, enabling better planning ahead in the San Antonio housing market.
Key Features
| Feature | Details |
|---|---|
| Current 30-Year Fixed Mortgage Rate | 6.11% |
| Previous Week’s Rate | 6.1% |
| Rate One Year Ago | 6.89% |
| 15-Year Fixed Mortgage Rate | 5.5% |
| Rate One Year Ago | 6.05% |
| 10-Year Treasury Yield | 4.21% |
| Federal Reserve’s Recent Action | Paused rate cuts after three reductions to support the job market |
| Housing Market Status | Subdued due to higher rates, soaring home prices, and a persistent housing shortage |
| Home Sales Trend Since 2022 | Depressed, with a modest rebound in late 2025 |
| Buyers’ Negotiating Power | Increased, with nearly two-thirds paying below list price last year |
| Economists’ Forecast for Mortgage Rates | Stable around 6% in the coming months |
Conclusion
The San Antonio housing market continues to navigate challenges amidst fluctuating mortgage rates. With buyers now in a stronger negotiating position, a stable mortgage rate outlook could reinvigorate the local market. Stakeholders, including potential homeowners and small-business owners, can remain optimistic about their opportunities to build and invest in the thriving community of San Antonio.
As we watch these trends unfold, it’s crucial for residents to support local businesses and engage in initiatives that foster the continued economic development of our vibrant city.
Frequently Asked Questions (FAQ)
What is the current average U.S. long-term mortgage rate?
The benchmark 30-year fixed-rate mortgage rate is 6.11%, essentially unchanged from the previous week’s rate of 6.1%. A year ago, the rate averaged 6.89%.
What factors influence mortgage rates?
Mortgage rates are influenced by several factors, including the Federal Reserve’s interest rate policies and bond market investors’ expectations for the economy and inflation.
How has the housing market been affected by mortgage rates?
Despite a federal pause in rate cuts following previous reductions to support the job market, the housing market remains subdued due to a combination of higher rates, soaring home prices, and a persistent housing shortage. Since 2022, home sales have been depressed, though a dip in rates last summer spurred a modest rebound in late 2025. Buyers presently face less competition and greater inventory, giving them more negotiating power, with nearly two-thirds of buyers last year paying below list price. Economists forecast mortgage rates will stay near 6% in the coming months.
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Author: STAFF HERE SAN ANTONIO WRITER
The SAN ANTONIO STAFF WRITER represents the experienced team at HERESanAntonio.com, your go-to source for actionable local news and information in San Antonio, Bexar County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Fiesta San Antonio, San Antonio Stock Show & Rodeo, and Dia de los Muertos. Our coverage extends to key organizations like the Greater San Antonio Chamber of Commerce and United Way of San Antonio and Bexar County, plus leading businesses in retail, insurance, and energy that power the local economy such as H-E-B, USAA, and Valero Energy. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HEREHouston.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
