Should I Buy a House Now or Wait? What 7% Mortgage Rates Mean for San Antonio Buyers

There's no one right answer. It comes down to your budget, how long you plan to stay, and how much room the market gives you to negotiate. With the national 30-year average crossing 7% in late September 2026 and San Antonio carrying close to six months of homes for sale, many local buyers have more time and bargaining room than they did a year ago. The best decision usually starts with your own numbers, not the headline rate.

What just happened to mortgage rates?

Freddie Mac's weekly Primary Mortgage Market Survey put the average 30-year fixed rate at 7.03% on September 24, 2026. That's up from 6.95% the week before and 6.30% a year earlier. The 15-year fixed averaged 6.42%.

The jump followed the Federal Reserve's September 16 decision to raise its benchmark rate by a quarter point. According to Redfin's coverage of the meeting, most Fed officials projected at least one more increase, and Redfin expects mortgage rates to "generally stay high for the foreseeable future."

One thing worth knowing: the Fed doesn't set mortgage rates directly. They move with the bond market, inflation expectations, and the broader economy, so they can shift week to week.

These are national survey averages reported by Freddie Mac. They are not an offer or a quote of TLP Mortgage's rates. Your rate depends on your credit, down payment, loan type and the market on the day you lock.

What's happening in the San Antonio housing market?

While rates climbed, San Antonio held steady. According to the San Antonio Board of Realtors' August 2026 report, as covered by Texas Public Radio:

• Home sales rose about 4% from August 2025.

• The median price held just above $299,000, unchanged from a year earlier.

• Homes sat on the market around 82 days on average, longer than a year ago.

• Inventory was just under a six-month supply.

• Statewide, Texas home sales fell by more than 4% over the same period.

In plain terms: San Antonio buyers generally have more homes to choose from and more time to decide. Longer market times can also mean sellers are more open to price talks or closing-cost help. That's never a given, and every home and seller is different.

Five questions to ask before you decide

1. How long will you stay? If you expect to be in the home for several years, short-term swings in rates and prices usually matter less. If you might move in a year or two, renting a bit longer may make more sense.

2. What monthly payment feels comfortable? Your approval amount isn't your budget. Build in room for taxes, insurance, HOA dues, and life. Property taxes and insurance are a big part of a Texas payment, so look at the full monthly number.

3. Are your savings ready? Think beyond the down payment. Closing costs, moving costs, and a cushion for repairs all count. Down payment assistance programs may help if you qualify.

4. What's your plan if rates drop? Refinancing later can be an option, but it isn't guaranteed, and it has costs. Buy a home you can afford at today's rate, and treat any future refinance as a bonus, not the plan.

5. What does waiting actually cost or save you? Nobody can reliably predict where rates or prices go next. Waiting could help, or it could mean paying more later. Rent paid while you wait is part of the math too.

Strategies San Antonio buyers are using in a 7% market

A higher rate doesn't have to be the whole story. Here are tools worth asking your loan officer and agent about.

Seller concessions (seller credits). Sellers can contribute toward your costs, within limits set by each program:

• Conventional: Fannie Mae caps interested-party contributions for a primary home at 3% with less than 10% down, 6% with 10% to 25% down, and 9% with more than 25% down.

• FHA: generally up to 6% of the lower of the sales price or appraised value.

• VA: concessions up to 4% of the sale price, and the seller can also pay the veteran's normal loan closing costs outside that 4%.

Temporary rate buydown (like a 2-1). Money set aside at closing, often from a seller or builder, lowers your payment for the first year or two. Under Fannie Mae's rules you still qualify at the full note rate, and the cost counts toward the concession limits above. It can ease the first years; your payment will rise to the full note-rate payment once the buydown period ends.

Discount points. Paying points upfront can lower your rate for the life of the loan. Whether it's worth it depends on how long you keep the loan, so ask for a break-even comparison.

Compare loan programs. FHA, VA, and USDA (for homes in USDA-eligible areas), conventional, and down payment assistance programs each handle down payment, mortgage insurance, and credit differently. The right fit can matter as much as the rate.

Adjustable-rate mortgages. An ARM may start lower than a fixed rate. Make sure you understand how and when it can adjust before choosing one.

A note for San Antonio realtors

With homes sitting longer, offers that ask for seller credits toward a buydown or closing costs may help buyers who are stretched by the payment. Loop in your lender early so the credit fits the buyer's loan program limits.

Talk it through with a local team.

Buying now or waiting is a personal decision, and it deserves a real conversation, not a sales pitch. The TLP Mortgage team in San Antonio can walk through your numbers, compare programs side by side, and show what a seller credit or buydown might look like for your situation. Whether you buy this fall or next year, you'll leave with a clearer plan.

Mortgage Strategy Built for Real Life. Reach out to the TLP Mortgage team.

Rates and programs subject to change. Not a commitment to lend. All loans are subject to credit approval and underwriting. This article is for educational purposes and is not tax or legal advice.

FAQ

Will mortgage rates go down later in 2026? No one can reliably predict that. After raising its benchmark rate on September 16, 2026, most Fed officials projected at least one more increase, according to Redfin. It's safer to plan around a payment you can afford today.

Can the seller help lower my interest rate in Texas? Often, yes. Sellers can pay for a temporary buydown or discount points as part of seller concessions, within each loan program's limits. Your loan officer can confirm what fits your loan.

Is San Antonio a buyer's market right now? San Antonio had just under a six-month supply of homes in August 2026, with homes averaging about 82 days on market, per SABOR. That generally gives buyers more choice and time, though conditions vary by neighborhood and price range.

Should I buy now and refinance when rates drop? Refinancing can be an option later, but it isn't guaranteed, and it has costs. Choose a home and payment that work at today's rate, and treat a future refinance as a possible bonus.

How much do I need to buy a home in San Antonio? It depends on the loan. FHA typically requires at least 3.5% down; eligible veterans may buy with no down payment using a VA loan, and some conventional loans allow 3% down. Plan for closing costs and reserves too, and ask about down payment assistance.

Rates and programs subject to change. Not a commitment to lend.

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