The Fed Raised Rates: What Does That Actually Mean for San Antonio Homebuyers?
Last week the Federal Reserve voted 12-0 to raise its benchmark rate by a quarter point to a range of 3.75%–4%, its first increase since 2023. Then Freddie Mac's weekly survey put the 30-year fixed mortgage rate at 6.95%, and the headlines did the rest. Advisor PerspectivesFreddie Mac
If you're a San Antonio buyer, the easy conclusion is "rates are almost 7%, so I'll wait. "Before you make that call, here's what actually happened and what it means for where you live.
The rate may not be the opportunity. The market may be the opportunity.
The Fed rate and your mortgage rate are not the same thing
The Fed sets a short-term rate that banks charge each other overnight. Your mortgage rate is priced off longer-term bond markets, mainly the 10-year Treasury yield, plus a spread lenders add for risk and costs. The two usually move in the same direction, but not in lockstep.
Notice the timing. Mortgage rates had climbed for four straight weeks before the Fed's announcement because markets had already priced the hike in. The Fed's move confirmed the trend more than it caused it. Fed officials are also signaling another hike later this year, but nobody, including us, can promise where mortgage rates go from here. Norada Real Estate CNN
Borrowing costs really have risen.
The 30-year rate was 69 basis points higher than a year ago. On a $270,000 loan, the difference between about 6.25% and 6.95% is roughly $120 more per month in principal and interest. That's real money, and we won't pretend otherwise. Norada Real Estate
But a rate is only one input to your payment, and the market you're buying in is the other.
What San Antonio's market is doing
Locally, the picture looks very different from a bidding-war market:
More time. SABOR reports homes are averaging around 82 days on the market, longer than a year ago. Texas Public Radio
More choice. Inventory sits at just under a six-month supply, which is closer to balanced than the tight markets of the past few years. Texas Public Radio
Stable prices. The median price was just above $299,000, unchanged from August 2025, so this isn't a crash. Sales are also up 4% year over year. Texas Public RadioTexas Public Radio
Price reductions. Realtor.com data showed about 25% of San Antonio–area listings carried price cuts this spring, and more recent analysis still shows San Antonio with more price cuts than comparison markets. Correa Realty GroupHousingWire
Seller motivation and concessions
A seller who has been on the market for 80-plus days thinks differently than one who had three offers the first weekend. Depending on the home, that can open the door to:
a price reduction
a seller credit toward closing costs
a rate buydown funded by the seller
repair requests that would have been off the table in a faster market
A credit toward a buydown can sometimes do more for your monthly payment than the same dollars off the price. Whether it does depends on your loan, your timeline, and the home, which is why we run the numbers instead of guessing.
Taxes and insurance can matter as much as the rate.
In Texas, your monthly payment includes more than principal and interest. Property taxes vary by taxing district, and homeowners insurance can vary widely with the home's age, roof, and location. Two homes at the same price and the same rate can carry very different monthly costs. Compare the total payment, not just the rate.
Your numbers are the numbers that matter.
A national average, or even a San Antonio average, isn't your quote. Your credit profile, down payment, loan program (conventional, FHA, VA, or USDA), or down payment assistance, and the specific home all change the answer. For some buyers, waiting is the right call. For others, the current market offers leverage that a lower rate wouldn't have.
Neither "buy now" nor "wait" is right for everyone. The right answer comes from your numbers, not the headline.
Ready to see yours? Talk with the TLP Mortgage team for a real payment breakdown, including taxes, insurance, and what seller concessions could do for you. Mortgage With Heart.
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