If you're trying to buy a home in Boerne or Fair Oaks Ranch, affordability is probably what's on your mind. And as mortgage rates tick up again, it's fair to wonder if you should just hit pause and wait for them to come back down.
For now, though, they're headed the other way. Mortgage News Daily data shows how rates have risen this year (see graph below):
Why? Mortgage rates track a lot of things well outside our market — overseas conditions, inflation data, oil prices, and decisions from the Federal Reserve, which recently raised its own benchmark rate. Danielle Hale, Chief Economist at Realtor.com, has said the upward pressure on rates was already building before that Fed move, and doesn't look like it's letting up soon.
Now, that's probably not what you wanted to hear. But it doesn't mean there's nothing you can do. You can't control where rates go from here, but you can control several things that shape the rate you actually get — and that matters just as much whether you're looking in Fair Oaks Ranch, near downtown Boerne, or out toward the Hill Country's newer communities.
So where should you focus? Let's walk through it.
Work on Your Credit Score
Your credit score plays a big role in the rate you qualify for, and even a small improvement can make a real difference in your monthly payment. Freddie Mac puts it simply: a higher credit score generally opens the door to better loan terms and a lower rate.
So make sure you're doing what you can to keep your score up before you start house hunting in the 78006 or 78015 zip codes. If you're not sure where your score stands, or how to improve it, talk to a trusted local loan officer before you go under contract, not after.
Explore Your Loan Options
The type and term of your loan both affect your rate. Conventional, FHA, VA, and USDA loans each come with their own requirements and rates, and your term — 15, 20, or 30 years — changes both your payment and the total interest you'll pay. The structure matters too: a fixed-rate loan holds steady over time, while an adjustable-rate loan usually starts lower and can move later on. Bankrate explains that fixed rates tend to run higher than introductory adjustable rates because the lender is taking on more long-term risk, while government-backed FHA, VA, and USDA loans sometimes come in lower since they carry a government guarantee that reduces the lender's exposure.
It's worth exploring your options with a lender who knows this market before you decide. Just balance your goals, your likely rate, and any tradeoffs — and it's not a bad idea to talk to more than one lender to see how the options compare.
Consider a Newly Built Home
Another path to a lower rate comes down to the kind of home you buy. Many builders are buying down mortgage rates as an incentive, which lowers your monthly payment. It's one way they're working to get their homes sold.
According to Realtor.com, buyers of newly built homes nationally landed a lower average rate last quarter than buyers of existing homes (see graph below):
We're seeing the same trend show up locally, with a number of Hill Country builders offering rate buydowns and closing cost incentives in communities like Cordillera Ranch, Esperanza, and Tapatio Springs. If a lower rate is your goal, it's worth asking your agent to walk you through which new-construction communities are currently offering this kind of incentive.
Bottom Line
You can't control where mortgage rates go, but you can control your credit, your loan, and the kind of home you buy. Working with a trusted local lender can help you lock in the best rate you qualify for in Boerne or Fair Oaks Ranch. And when you're ready to make a move that fits your budget, let's connect.
