How Much Home Can You Afford as Mortgage Rates Shift? What Buyers in DFW Need to Know Right Now

 

In real estate, timing is everything. And when it comes to mortgage interest rates, even small changes can have a big impact on your home buying power. If you are house hunting in our Dallas Fort Worth Metroplex, understanding how current rates affect what you can afford is essential.

According to Redfin economists, the average 30-year fixed mortgage rate dropped to 6.57% on August 4, the lowest level in the past 10 months. For serious buyers in the Dallas Fort Worth area, this creates a valuable opportunity to increase purchasing power, negotiate more favorable deals, and move forward with confidence.

Let’s break down what this shift means for local homebuyers and why now may be the perfect time to act.

A Small Rate Change Can Increase Your Buying Power

A dip in mortgage rates might seem small, but the impact on your budget can be substantial. For example, a buyer with a $3,000 monthly housing budget could afford a $439,000 home when rates were at 7.08% in May. Today, with the rate down to 6.57%, that same buyer can afford a $458,750 home. That is nearly $20,000 more purchasing power without increasing your monthly budget.

As rates decrease, more of your payment goes toward the principal rather than interest. Over time, that can mean thousands of dollars saved and more home for your money.

Let’s look at how monthly payments adjust based on interest rates, assuming a 30-year fixed loan, 20 percent down, a 1.25 percent property tax rate, 0.5 percent homeowners insurance, and no HOA dues:

• At 7.5 percent, a $3,000 monthly budget buys a home in the low $430s
• At 6.5 percent, the same budget buys closer to $460,000
• At 5.5 percent, buyers can afford homes in the $490,000 range

This flexibility matters in areas like Haslet, Keller, and Southlake, where home prices continue to rise and inventory remains competitive.

What This Means for DFW Buyers Right Now

In Fort Worth and throughout the North Texas suburbs, many neighborhoods are seeing more listings than active buyers. This creates a temporary advantage for buyers looking for a deal.

In communities such as Haslet, Trophy Club, and Northlake, buyers are currently negotiating:

• Price reductions on homes that have been on the market longer
• Seller-paid closing costs
• Interest rate buydowns and builder incentives
• Flexible timelines and stronger contract terms

But this advantage will not last forever. Redfin notes that the number of new listings is beginning to decline, as more sellers choose to stay put. If inventory tightens again, buyers may see higher prices and more competition return quickly.

What Caused the Drop in Rates?

The recent dip in rates came after a weaker-than-expected jobs report in July. Fewer new jobs were added and the unemployment rate increased slightly. As a result, economists are now predicting that the Federal Reserve may begin cutting interest rates later this year.

If the Fed reduces rates further, mortgage rates could continue to drop. But when that happens, more buyers are likely to return to the market, which could quickly drive home prices higher and reduce buyer leverage.

Why Now Could Be the Right Time

Daryl Fairweather, Chief Economist at Redfin, says it best:

“This dip in mortgage rates gives house hunters a window of opportunity to buy before summer ends. While housing costs are still fairly high, the recent decline in rates boosts purchasing power and improves overall homebuying conditions.”

Buyers across Haslet, Fort Worth, and Keller are seeing a rare moment in the market where lower rates, higher inventory, and room to negotiate align. This is the moment to consider making a move before those conditions shift again.

Important Reminder: Buy What You Can Afford Today

While many experts promote the strategy to buy now and refinance later, it is critical to apply this approach responsibly.

Only purchase a home based on what you can comfortably afford at today’s interest rate, not what you hope your payment will be if rates go down in the future. Refinancing later can absolutely improve your financial position, but your current budget should support the monthly payment as it stands today.

Do not overextend yourself with the assumption that refinancing is guaranteed or immediate. Focus on long-term stability and short-term affordability.

Local Guidance You Can Trust

With more than 600 homes sold and over $271 million in personal sales volume, I have helped clients across every type of market in the Dallas Fort Worth area. Whether you are a first-time buyer or looking to upgrade, I will help you build a strategy that makes sense based on local market conditions and your personal goals.

As the team lead of Elite Realty Group by Redfin, we have sold over 1,500 homes and achieved more than $550 million in total sales volume. Our team was recently recognized as a Top 50 Small Team in the United States for 2025 by RealTrends.

We proudly serve Haslet, Fort Worth, Keller, Southlake, Trophy Club, and surrounding neighborhoods with experience, insight, and real results.

Let’s Explore Your Options

📍 Want to tour available homes in Haslet or Keller?
📲 Need to run the numbers on your buying power at today’s rates?
💬 Curious about negotiating seller incentives or interest rate buydowns?
🏡 Ready to move forward with expert guidance and local insight?

Visit 4wheeltorhomes.com or reach out to schedule a private consultation. The right home and the right rate may already be waiting for you!

𝗖𝗿𝘆𝘀𝘁𝗮𝗹 𝗭𝘀𝗰𝗵𝗶𝗿𝗻𝘁 | 𝗧𝗼𝗽 𝗗𝗙𝗪 𝗥𝗲𝗮𝗹𝘁𝗼𝗿 | 𝟴𝟭𝟳-𝟴𝟳𝟰-𝟳𝟲𝟳𝟳 | 𝗖𝗭@𝗥𝗲𝗱𝗳𝗶𝗻.𝗰𝗼𝗺

Should I Wait or Should I Buy?? Waiting for Lower Mortgage Rates Before Buying a Home?

Here’s What You Need to Know in 2025

If you've been thinking about buying a home in Fort Worth, Haslet, Keller, or Southlake, you've probably asked yourself this question:

Should I wait for interest rates to drop before I buy?

You're not alone. Many North Texas buyers are hoping that mortgage rates will fall before making a move. But here’s the reality: when rates drop, competition increases—and so do home prices.

Let’s dig into what that means for your wallet, your timeline, and your buying power in today's market.

What Happens When Mortgage Rates Drop?

It sounds simple—lower rates equal lower monthly payments. But there’s more to it.

Here’s what typically happens when mortgage rates decrease:

• 📈 Home prices rise as demand surges
• 👥 More buyers flood the market creating bidding wars
• ⏳ Homes sell faster, giving you less time to make decisions and negotiate

In fact, according to the Mortgage Bankers Association, mortgage applications surged 9 percent in a single week earlier this year when rates dropped by just a fraction. This chain reaction often erases any savings you would have gained from a lower interest rate.

In markets like DFW, where inventory remains tight and demand stays strong, the result is clear: waiting may cost you more than acting now.

Local Market Snapshot: Fort Worth, Haslet, Keller, and Southlake

Across the Dallas-Fort Worth real estate market, we're seeing steady demand and moderate price growth—especially in key areas like:

• Haslet, where proximity to Alliance Town Center, top-rated Northwest ISD schools, and growing new construction communities like Wellington keep demand high
• Keller, with its established neighborhoods, strong schools, and limited inventory
• Southlake, where luxury homes continue to command top dollar, and the local market remains competitive
• Fort Worth, offering diverse options, from historic charm to modern builds, all within reach of major highways and job centers

These areas continue to attract buyers who want convenience, community amenities, and long-term equity growth. When rates dip even slightly, homes in these markets can go under contract in days—not weeks.

The “Buy Now, Refinance Later” Strategy

Real estate experts, including those at Freddie Mac and Realtor.com, often recommend a simple but effective approach in today’s environment:

Buy the home now. Refinance the mortgage later.

This strategy can make a lot of sense—especially in markets where prices are expected to keep climbing—but it does come with one important caveat.

While refinancing later may reduce your monthly payment, it’s essential to base your purchase on what you can comfortably afford right now, not what you hope your payment might become if rates drop in the future. In other words, avoid stretching your budget today based on a hypothetical tomorrow.

Here’s why this approach still works when applied wisely:

·       You lock in today’s home price before values increase further

·       You begin building equity immediately

·       You reduce your exposure to rising competition

·       You maintain flexibility to refinance if and when rates improve

Used responsibly, this strategy offers a balanced way to buy in the current market without overextending your finances. It’s all about being proactive, not speculative.

What If Rates Do Drop?

If mortgage rates fall by a full point (from 7 percent to 6 percent, for example), that’s great for affordability. But that small savings could quickly be offset if:

• The home you want increases in price by $25,000 to $50,000
• You get caught in a bidding war that forces you to pay over asking
• Your offer loses out entirely and you have to start the search again

In low-inventory communities like Trophy Club and Northlake, these situations are already playing out—even with interest rates still hovering in the upper sixes.

Timing the Market vs. Timing Your Life

It’s tempting to try and “time the market,” but for most buyers, the better question is:

Is it the right time for you?

If you're financially stable, ready to plant roots, and have found a home that fits your lifestyle, waiting may not be worth the risk.

Keep in mind:

• Rent prices continue to rise across DFW
• Equity builds faster the sooner you own
• Your next move is more about your goals than rate predictions

And with the right Realtor guiding you, you can protect your investment now and explore refinancing options down the line.

Work With a Trusted Local Expert

If you're thinking about buying a home in Haslet, Keller, Fort Worth, Southlake, or surrounding areas, let’s talk strategy.

With over 600 homes sold and $271 million in personal sales volume, I help clients navigate changing market conditions every day. As the team lead of Elite Realty Group by Redfin, recognized as a Top 50 Small Team in the U.S., I combine local knowledge, expert negotiation, and real-time data to help you make smart moves at the right time.

Ready to Explore Your Options?

📍 Schedule a home tour in Haslet, Keller, or Southlake
📲 Learn about down payment assistance and financing options
💬 Ask about current inventory and off-market listings
🏡 Build a plan that works for your goals and timeline

Visit 4wheeltorhomes.com or reach out directly to get started. The perfect home may already be waiting—and now could be the right time to make it yours.

𝗖𝗿𝘆𝘀𝘁𝗮𝗹 𝗭𝘀𝗰𝗵𝗶𝗿𝗻𝘁 | 𝗧𝗼𝗽 𝗗𝗙𝗪 𝗥𝗲𝗮𝗹𝘁𝗼𝗿 | 𝟴𝟭𝟳-𝟴𝟳𝟰-𝟳𝟲𝟳𝟳 | 𝗖𝗭@𝗥𝗲𝗱𝗳𝗶𝗻.𝗰𝗼𝗺

𝐍𝐞𝐞𝐝 𝐦𝐨𝐫𝐞 𝐝𝐞𝐭𝐚𝐢𝐥𝐬?? 𝐂𝐨𝐧𝐭𝐚𝐜𝐭 𝐂𝐫𝐲𝐬𝐭𝐚𝐥 𝐙𝐬𝐜𝐡𝐢𝐫𝐧𝐭, 𝐓𝐨𝐩-𝐏𝐫𝐨𝐝𝐮𝐜𝐢𝐧𝐠 𝐑𝐞𝐚𝐥 𝐄𝐬𝐭𝐚𝐭𝐞 𝐀𝐠𝐞𝐧𝐭 𝐢𝐧 𝐅𝐨𝐫𝐭 𝐖𝐨𝐫𝐭𝐡 𝐚𝐧𝐝 𝐓𝐞𝐚𝐦 𝐋𝐞𝐚𝐝 𝐨𝐟 𝐄𝐥𝐢𝐭𝐞 𝐑𝐞𝐚𝐥𝐭𝐲 𝐆𝐫𝐨𝐮𝐩 𝐛𝐲 𝐑𝐞𝐝𝐟𝐢𝐧, a Top 50 Small Team in the U.S. for 2025 by RealTrends. Crystal leads the Best Agents in DFW and has helped over 600 clients buy and sell homes across the Metroplex, with more than $271M in personal sales volume.

Crystal specializes in homes for sale in Fort Worth, Haslet, Keller, Southlake, Westlake, Trophy Club, Roanoke, Justin, Argyle, and Northlake, providing expert real estate services to both buyers and sellers. Whether you're relocating, upgrading, downsizing, or investing, she brings unmatched local knowledge and negotiation expertise to every deal.