Top 6 Summary

• Texas home prices posted a slight annual dip in July while sales volume remained steady, suggesting stabilization in the state’s largest metros.

• Housing inventory expanded for the fourth consecutive month, helping moderate price pressure and reducing bidding wars in several regions.

• Mortgage delinquency rates held near historic lows, but lenders note a mild uptick in early-stage delinquencies compared to spring.

• Statewide 30-year mortgage rates rose again this week, echoing national trends and reshaping homebuyer affordability across Texas.

Top 6 Articles

Texas Housing Market Sees Further Inventory Growth in July

• Rising inventory this summer has tempered home price gains in Dallas-Fort Worth, Houston, and Austin, even as buyer activity stays resilient.

• The Texas Real Estate Research Center reports that months of housing supply crept upward to 3.5 statewide, the highest since early 2020.

• Economists expect conditions to gradually shift in buyers’ favor through the rest of 2025.

Median Home Price Dips Across Major Texas Metros

• Zillow’s latest data show the Texas median home price declined by 1.8% year-over-year to $347,000 in July, with softening most pronounced in Austin and San Antonio.

• This marks the first meaningful statewide annual price drop since 2011, despite resilient high-end activity.

• Analysts attribute the downward pressure to elevated mortgage rates and rising listing inventories.

Sales Volume Holds Steady Across Texas

• June and July sales volumes remained essentially flat year-over-year at just under 36,000 closings per month, with Houston and DFW leading transaction counts.

• Renewed new construction and the return of school-year seasonal demand kept activity moving despite potential buyer hesitancy.

• Redfin notes that average days on market fell slightly in July, indicating persistent demand for well-priced homes.

Texas Mortgage Delinquencies Edge Up Slightly

• Mortgage Bankers Association reports that Texas’ overall mortgage delinquency rate grew to 4.0% in Q2 2025, a marginal increase from the prior quarter.

• While still below pre-pandemic norms, experts warn that regional labor market softness could push delinquencies higher into fall.

• For now, serious (90+ day) delinquencies remain rare, keeping foreclosure activity muted.

Texas Mortgage Rates Climb Back Toward 7%

• As of mid-August, the average 30-year fixed mortgage rate statewide hit 6.94%, continuing a trend of rising rates over the summer.

• Higher rates have reduced purchasing power but contributed to moderating price growth.

• Industry watchers anticipate more volatility as the Federal Reserve signals a patient approach on rate cuts.

Technology and Lending Developments Reshape the Texas Market

• Texas brokerages and lenders are adopting new AI tools and automated underwriting systems to speed up closings and improve borrower verification.

• Regulatory scrutiny of fintech lenders has increased, prompting a renewed focus on compliance and risk management.

• Industry leaders say digital adoption is now crucial for serving younger buyers and improving operational efficiency.