TYLER, Texas (KLTV) – The average long-term U.S. mortgage rate climbed for a third straight week, reaching its highest level in nearly 12 months and pushing up borrowing costs for prospective homebuyers.
Mortgage buyer Freddie Mac reported Thursday that the benchmark 30-year fixed mortgage rate rose to 6.58%, up from 6.55% last week. One year ago, the average rate was 6.74%.
Nationally, higher mortgage rates can add hundreds of dollars a month in costs for borrowers, limiting purchasing power and contributing to sluggish home sales. But local real estate professionals in East Texas say the “nearly 12-month high” label can sound more alarming than it is — and that buyers still have options.
“When in doubt, zoom out”
CMG Home Loans lender Amber Bowlden said the “12-month high” phrase may trigger unnecessary panic.
“The 12-month high thing is kind of scary to a lot of people,” Bowlden said. “We all saw it on the news… and of course, it causes a little bit of panic.”
Bowlden emphasized that mortgage rates have moved higher than today’s level in recent years.
“What people don’t think about is actually rates were even higher August of 2025,” she said. “And then before that, October 2022, they’re even higher.”
Life changes don’t stop — the market shifts
Even with higher borrowing costs, Bowlden said real life continues to drive housing decisions.
“Life changes still happen,” she said. “People still buy houses because they’re getting married. They’re having children. They’re getting divorced. They’re downsizing… Whatever the situation is, people continue to still move.”
Instead of seeing a total freeze, she said the market adjusts.
“We’re not seeing a stop in the market, but it changes,” Bowlden said.
Budget math and negotiation
Nolan Properties Realtor Christian Gonzalez said one of the biggest changes he sees is what buyers can afford as rates shift.
“Buyers definitely have to reduce their budget whenever rates go up,” Gonzalez said. “And that’s just the simple math of it.”
Gonzalez said that can translate into more careful shopping and, in some cases, more negotiation.
“Sellers are really encouraged to price their home accurately the first time,” he said. “You don’t want to overprice your home… because a higher priced home will scare away your buyers.”
He also said some buyers try to offset higher payments by combining lender programs with negotiated concessions.
“Sometimes buyers will couple these lender incentives with asking for seller concession incentives,” Gonzalez said, “to overall just make their home buying experience as easy as possible with the economy that we have.”
Smith County’s median home price in Q2 2026 was $310,000, according to The Greater Tyler Association of Realtors.
Payment — not just rate — is what buyers live with
Bowlden said her conversations with clients often shift away from the interest rate and toward the number that hits their bank account each month.
“Our shift kind of focuses from interest rate to more payment,” she said. “Each month, the client doesn’t say, ‘let me pay my 6.5% mortgage.’ They’re saying, ‘let me pay whatever this dollar amount is.’”
Refinancing later is common
Bowlden said many borrowers won’t keep the same loan for the full time they own the home.
“Statistically, you’re going to keep that home seven to ten years,” she said. “You may not keep that loan for that long.”
If rates drop in the future, she said refinancing activity tends to return.
“We saw it when rates dropped. We had so many refinances going into the market,” Bowlden said. “And eventually, if the market changes, it’ll happen again.”
A reminder about escrow: taxes and insurance can change payments
Bowlden also urged homeowners — and buyers — to remember that a monthly mortgage payment can rise even with a fixed interest rate if escrow costs increase.
“We get calls around this time of year saying, ‘my payment doubled,’” she said. “And it’s not the principal or interest that’s changed. It’s those escrow payments.”
She recommended Texas homeowners file for a homestead exemption when eligible.
“Anytime you’re buying a primary residence in Texas, you do get a homestead exemption,” Bowlden said. “That helps lower your property taxes.”
What local experts recommend
Both Bowlden and Gonzalez said shoppers should focus on affordability and the full monthly payment.
Gonzalez added that waiting for a “perfect” moment can keep would-be buyers on the sidelines indefinitely.
“If you want to buy a home and you need to buy a home, the time is never going to be perfect,” Gonzalez said.
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