San Antonio, TX, October 10, 2025

News Summary

Mortgage rates are holding steady, with a current average of 6.3% for a 30-year fixed mortgage. The ongoing federal government shutdown is affecting the housing market by causing delays in transactions and reducing buyer confidence. With pending sales down and home prices rising, many potential buyers are stepping back from making commitments in this uncertain market. The government shutdown is resulting in significant delays in essential services like flood insurance, impacting the overall real estate landscape.

Mortgage Rates Remain Stable Amid Government Shutdown, Buyers Reluctant to Commit

San Antonio, TX – Mortgage rates continue to hold steady at some of the lowest levels of the year, despite the ongoing federal government shutdown, which is contributing to uncertainty in the housing market. As of October 9, the average rates for a 30-year fixed mortgage are at 6.3%, a slight decrease from 6.34% the previous week. Over the past month, mortgage rates have remained within a narrow range, fostering a cautious atmosphere among homebuyers.

Market Activity Influenced by External Factors

The federal government shutdown has now entered its second week, impacting various sectors including real estate. This has led to a quieter housing market, where new real estate listings saw a modest year-over-year increase of 2.3% during the four weeks ending October 5, marking the largest growth in three months. However, overall mortgage applications have decreased by 4.7% for the week ending October 3, with purchase applications specifically down by 1%. Many potential buyers are exploring different offer strategies due to the uncertain market conditions.

Pending Sales and Inventory Trends

Recent data indicates that the typical home now takes approximately 48 days to go under contract, which is a week longer than the same period last year. Moreover, pending sales have dropped by 1.3% year-over-year, marking the largest decline in five months. While inventory levels have remained stable, some sellers are opting to withdraw their homes from the market.

Impact of Government Shutdown on Real Estate

The ongoing government shutdown has serious repercussions for real estate transactions, notably affecting flood insurance availability. An estimated 1,400 property transactions are delayed daily due to these interruptions, as highlighted by industry experts. The National Association of Realtors noted that these delays are having significant repercussions on the housing market.

Future Trends and Market Expectations

The Mortgage Bankers Association reported a substantial 9.2% increase in mortgage applications previously when rates hit their low point since last October. The positive dynamics in the mortgage market are largely attributed to decreasing interest rates paired with expectations for potential rate cuts by the Federal Reserve. Despite this, inflation remains at 2.9% annually, above the Fed’s target rate, which creates ongoing challenges for buyers.

Furthermore, home prices continue to rise, with the median price for existing homes reaching $422,400 in July. Increasing costs and elevated prices are keeping many prospective buyers on the sidelines. Notably, home inventory has increased for 22 consecutive months, although the pace of improvement is beginning to slow.

A major contributor to market hesitance remains that approximately 80% of current homeowners have interest rates below 6%, reducing their incentive to sell. Specifically, the demand for second homes in the San Antonio area is dwindling, with new mortgages down 7% from the previous year, marking a stark 69% decline from 2021.

FAQ

What is the current average mortgage rate?

The average 30-year fixed mortgage rate is 6.3% as of October 9, down slightly from 6.34% the previous week.

How is the government shutdown impacting the housing market?

The government shutdown is leading to delays in flood insurance availability, affecting approximately 1,400 property transactions daily.

What has happened to pending sales in the housing market?

Pending sales have dropped 1.3% year-over-year, indicating the largest decline in five months.

What are the current trends in home prices?

Existing home prices reached a median of $422,400 in July, continuing to rise.

How long does it take for a typical home to go under contract in the current market?

The typical home takes 48 days to go under contract, which is a week longer than the same time last year.

Feature	Status
Average Mortgage Rate	6.3%
Pending Sales Change	-1.3% year-over-year
Days to Contract	48 days
Current Home Price Median	$422,400

Date	Event	Status/Source
October 9	Average mortgage rate at 6.3%	Stable
October 3	Mortgage applications decreased by 4.7%	Decrease
October 5	New listings rose by 2.3% year-over-year	Increase
July	Median existing home price reached $422,400	Increase

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Additional Resources

• iHeart – San Antonio’s First News
• Wikipedia: Mortgage Rates
• Fox San Antonio
• Google Search: San Antonio Housing Market
• San Antonio Express-News
• Google Scholar: Housing Market Trends
• Axios – San Antonio
• Encyclopedia Britannica: Federal Reserve Interest Rate
• iHeart – San Antonio’s First News
• Google News: Real Estate Market News