San Antonio Mortgage Rate Forecast (Q3 2025): Should You Wait?
San Antonio homebuyers are facing a critical decision—buy now or wait for rates to drop? With mortgage rates hovering around 6.5%–6.75% and expert predictions hinting at a dip to 6.4% by Q3 2025, the timing could impact your monthly budget and long-term savings.
LRG Realty, a trusted name in the Alamo City real estate market, offers deep insights into rate forecasts, market trends, and practical steps to prepare.
Whether you're a first-time buyer or considering a refinance, this article helps you navigate the current market and decide the best move for your financial goals.
Key Takeaways
- Even a 0.35% rate drop could significantly reduce long-term mortgage costs for San Antonio buyers.
- Expert forecasts vary, but most agree rates are unlikely to return to pandemic-era lows soon.
- San Antonio's mortgage trends closely follow national inflation and Federal Reserve decisions.
- New construction inventory is easing competition, especially in suburban neighborhoods.
- Buyers with strong credit (680+) have the best shot at locking in below-market rates.
- Local job growth in healthcare and tech adds stability to San Antonio’s housing demand.
- High property taxes in Bexar County may offset savings from rate drops—factor this in.
- Programs like VA IRRRL and My First Texas Home offer financial tools to improve affordability.
Current Mortgage Rates in San Antonio
As of July 2025, San Antonio’s 30-year fixed mortgage rates range from 6.5% to 6.75%, according to Freddie Mac. This aligns with national trends but reflects San Antonio’s affordability edge, with median home prices at $289,995, per LRG Realty’s market insights.
LRG Realty notes that rates have ticked up slightly from early 2025’s low of 6.3%, influenced by economic factors like inflation and Federal Reserve policy.
San Antonio Mortgage Rates by Loan Type
Here’s a snapshot of San Antonio mortgage rates by loan type as of July 2025. Actual rates may vary based on credit score, loan size, and lender terms:
| Loan Type | Average Rate (July 2025) | APR (Annual Percentage Rate) |
|---|---|---|
| 30-Year Fixed (Conventional) | 6.75%–6.9% | 6.9%–7.1% |
| 30-Year VA Fixed | 6.5%–6.75% | 6.7%–6.95% |
| 30-Year FHA Fixed | 6.25%–6.5% | 6.4%–6.65% |
| 15-Year Fixed (Conventional) | 6.0%–6.25% | 6.2%–6.45% |
These ranges reflect averages for San Antonio and may fluctuate with market conditions. Work with a local lender to get a personalized quote.
Rates vary based on credit score, loan amount, and lender. For example, borrowers with a 780+ FICO score and a loan-to-value (LTV) ratio of 75% may secure rates closer to 6.5%, while those with lower scores (620–680) might see rates near 6.75%.
Texas United Mortgage emphasizes that rates are only guaranteed upon locking with an application. working with local experts to navigate these nuances.
📈 Expert Predictions for San Antonio Mortgage Rates in Q3 2025
Looking ahead, experts offer varied but cautiously optimistic forecasts for San Antonio mortgage rates in Q3 2025:
- National Association of Realtors (NAR): Predicts 30-year fixed rates at 6.4% by Q3, driven by cooling inflation and potential Fed rate cuts. NAR’s Lawrence Yun says, “San Antonio’s affordability could amplify the impact of even a small rate drop.”
- Mortgage Bankers Association (MBA): Forecasts rates at 6.8% through Q3, with a decline to 6.7% by Q4, citing tariff-related inflation risks.
- Fannie Mae: Projects rates at 6.3% by Q4 2025, assuming the 10-year Treasury yield falls to 4.2% and inflation nears 3%. Fannie Mae notes San Antonio’s stable market could benefit from this trend.
- National Association of Home Builders (NAHB): Expects rates to average 6.66% in 2025, potentially dropping to 6.16% in 2026 if economic growth slows.
- Local Insight (LRG Realty): LRG Realty’s market analysis suggests rates may stabilize at 6.5%–6.6% in San Antonio, with new construction boosting inventory and easing rate pressure. Monitor local economic indicators like job growth in tech and healthcare.
🔍 Factors Shaping San Antonio’s Mortgage Rates
Several factors will influence rates in San Antonio by Q3 2025:
- Inflation: The Consumer Price Index is projected at 3.2% by Q4 2025, above the Fed’s 2% target. Tariffs could push inflation higher, keeping rates elevated. Federal Reserve data highlights this risk.
- Federal Reserve Policy: With the federal funds rate at 4.25%–4.5%, the Fed may cut rates once or twice in 2025, potentially lowering mortgage rates.
- San Antonio’s Economy: Growth in tech, healthcare, and military sectors drives housing demand, per LRG Realty, but a national slowdown could ease rates.
- Geopolitical Factors: Trade tensions or global conflicts could push investors to Treasuries, lowering yields and rates.
- Local Inventory: A 3.7% home price drop and 18% increase in listings give buyers more leverage, which could stabilize rates.
A local economist quoted by LRG Realty notes, “San Antonio’s resilience comes from its diverse economy, but rates will depend on national trends.” Timing the market is tough, but LRG Realty can guide you through the process.
Should You Wait for Rates to Drop in San Antonio?
Deciding whether to wait for a potential 6.4% rate in Q3 2025 depends on your goals, budget, and timeline. LRG Realty, known for its motto “with us, you win,” offers insights to weigh your options.
Why Wait?
Potential Savings: A drop from 6.75% to 6.4% on a $300,000 loan saves ~$60/month or $21,600 over 30 years. For San Antonio’s median $289,995 home, that’s ~$58/month.
More Inventory: LRG Realty reports an 18% increase in listings, and lower rates could prompt more sellers, easing competition in neighborhoods like Alamo Heights.
Affordability Boost: With median prices down 3.7% to $289,995, a rate drop could make homes in Stone Oak or Alamo Ranch more accessible.
Refinancing Opportunity: Waiting could let you lock in a lower rate or refinance via programs like the VA IRRRL for veterans.
Why Act Now?
Rate Risk: If inflation spikes, rates could hit 7%, per Wells Fargo, increasing payments by $120/month on a $300,000 loan.
Current Deals: San Antonio’s median home price of $289,995 is lower than Austin’s $450,000, making now a good time to buy. LRG Realty notes homes stay on the market longer (75 days), giving buyers leverage.
Refinancing Flexibility: If rates drop, you can refinance with low-cost options like the VA IRRRL or conventional streamline programs.
Less Competition: New construction and increased inventory mean fewer bidding wars, especially in emerging areas like Southtown.
Should You Wait or Buy Now? Here’s How the Math Breaks Down
Weighing the decision to act now or hold off until Q3 2025? This side-by-side breakdown helps you evaluate your next move in San Antonio’s market:
| Option | Pros | Cons |
|---|---|---|
| Wait Until Q3 | Possible rate drop, more listings, affordability boost | Risk of rate hikes, rising prices, delayed plans |
| Act Now | Secure rates, less competition, current affordability | Higher payments if rates drop, missed savings |
There’s no perfect timing, but working with LRG Realty ensures you’re ready for either scenario with expert guidance and lender connections.
✅ How to Prepare for a Mortgage in San Antonio
LRG Realty recommends these steps to secure the best mortgage terms in San Antonio:
- Check Your Credit: Aim for a 680+ FICO score for lower rates. Review your report at AnnualCreditReport.com and reduce high-interest debt.
- Get Pre-Approved: A pre-approval from a lender strengthens your offer and clarifies your budget. LRG Realty can connect you with trusted lenders.
- Compare Lenders: Rates and fees vary. Get quotes from at least three lenders, including local brokers like San Antonio Mortgage LLC.
- Understand Costs: Factor in San Antonio’s higher-than-average property taxes and closing costs. Escrow accounts can help manage tax payments monthly.
- Explore Programs: First-time buyers may qualify for the My First Texas Home program, which offers low-interest loans and up to 5% in down payment assistance. Veterans and public service workers may have additional options.
- Monitor Rates: Use tools like Freddie Mac’s rate survey or Mortgage News Daily to track market trends and time your application.
Pro tip: Work with LRG Realty’s experienced agents to negotiate seller concessions—like closing costs—in San Antonio’s buyer-friendly market.
Final Thoughts: Timing Your San Antonio Home Purchase
While expert forecasts hint at a possible dip in VA mortgage rates by Q3 2025, waiting comes with risk. If inflation spikes or the Fed delays cuts, rates could stay flat—or rise.
On the flip side, buying now gives you the advantage of VA loan benefits and less buyer competition. With refinancing options like the VA IRRRL, locking in now doesn’t mean missing out later.
The best approach?
Prepare now. Improve your credit, compare lenders, and work with a VA-experienced real estate agent.
Whether you wait or act, being informed is your strongest advantage in today’s shifting market.
FAQs About San Antonio Mortgage Rates in 2025
1. What are current mortgage rates in San Antonio?
As of July 2025, 30-year fixed rates range from 6.5% to 6.75% for conventional and VA loans, with FHA loans at 6.25%–6.5%, per Freddie Mac.
2. Will rates drop to 6.4% by Q3 2025?
NAR predicts 6.4% by Q3, while Fannie Mae projects 6.3% by Q4. Local factors like inventory growth could support a slight decline.
3. Should I wait to buy a home in San Antonio?
Waiting might save if rates drop, but risks higher rates or prices. LRG Realty suggests buying now to leverage current affordability and refinance later.
4. Can I refinance if rates drop?
Yes, programs like VA IRRRL or conventional streamline refinancing make it easy to lower rates with minimal costs if rates fall.
5. What mortgage programs are available in San Antonio?
Options include conventional, FHA, VA, and Texas’ My First Texas Home program, offering low-interest loans and down payment assistance for first-time buyers.
6. How do San Antonio’s property taxes affect my mortgage?
Higher-than-average taxes increase monthly payments if escrowed. LRG Realty advises budgeting for taxes and exploring exemptions like the homestead exemption.
7. What drives San Antonio mortgage rates?
Inflation, Fed policy, Treasury yields, and local demand influence rates. Your credit score and loan-to-value ratio also play a role.
8. How can I get the lowest rate in San Antonio?
Boost your credit, compare lenders, and consider paying points. LRG Realty can connect you with lenders offering competitive terms.
9. Are there first-time buyer programs in San Antonio?
Yes, programs like My First Texas Home and HUD-funded assistance offer low rates and up to 5% down payment help, per LRG Realty.
