Texas Mortgage Update: Rates Dip as New FHA Rules Loom

The national 30-year fixed mortgage rate fell to 7.18% on November 5, 2026 — a third straight weekly decline — while Texas buyers face 5.3 months of inventory and median seller price cuts near $14,900. The real opportunity: a negotiating window opening now, before new FHA credit-score rules take effect in 2027. This update comes from Bond Peter Njoku, a Licensed Mortgage Loan Originator in Texas with Mortgage Funding Solutions (bondmortgagesolutions.com · mfsolu.com). The rate and market figures are national survey averages from Freddie Mac and statewide data from the Texas Real Estate Research Center, not individual lender quotes — so your actual rate depends on credit, down payment, and lock timing.

Texas market softens with 5.3 months of inventory

Statewide figures from the Texas Real Estate Research Center show about 5.3 months of housing inventory, a $330,000 median price, and an average of 65 days on market. That roughly five-and-a-half-month supply is close to the six-month mark economists treat as a balanced market — but in much of Texas, the balance tilts toward buyers.

The clearest signal is price: the median seller reduction of roughly $14,900 means sellers are cutting list prices, which creates room to negotiate closing costs, request repairs, or roll a rate buydown into the deal. DFW is softer still, with August sales down about 11% year over year.

FHA adopts VantageScore 4.0 and FICO 10T in 2027

Beginning with case numbers assigned on or after January 1, 2027, FHA will accept VantageScore 4.0 and FICO Score 10T alongside the classic FICO score for eligible Title II loans (HUD). All borrowers on a loan must be scored with the same model, and each model must clear FHA's minimum decision credit scores of 500, 580, and 620 (FHA Preparedness Guide).

The practical effect for buyers: if an older scoring model undercounts your thin or nontraditional credit history, an alternative model could raise your qualifying score and open the door to a loan. FHA is holding virtual office hours for lenders November 16–20 to prepare for implementation. As a loan officer, my advice is to confirm your lender and credit vendor are ready to run these models before relying on an alternative score.

Low-down-payment options and Texas assistance

If you are ready to buy, several routes keep the upfront cost manageable. FHA loans offer low-down-payment financing, conventional programs allow as little as 3% down, and Texas assistance through TSAHC or the Texas Department of Housing and Community Affairs (TDHCA) can help close the gap.

Through its Homes for Texas Heroes program, TSAHC provides eligible buyers down payment assistance of up to 5% of the mortgage loan amount, subject to program limits and lender participation. That figure comes from TSAHC's own guidance; pairing it with a mortgage credit certificate can add thousands in federal tax savings over the life of the loan. For owners refinancing, compare total costs, monthly savings, the break-even period, and how long you expect to stay in the home before deciding.

Lock strategy beats rate timing for Texas buyers

With rates drifting lower but not guaranteed to keep falling, the move is to repricing and lock strategy, not timing. If you have a preapproval already issued, I will reprice it against today's numbers — but I won't promise further declines, and neither should you rely on one. For borrowers approaching contract or closing, we weigh your payment tolerance and decide whether to lock now or float toward settlement.

Texas buyers can also lean on loan types I work with daily through Mortgage Funding Solutions: FHA for low down payments, VA for eligible veterans, and conventional 3%-down programs for those who qualify. Pair any of them with TSAHC or TDHCA assistance and the math improves further. Rates and terms are subject to change based on market conditions, credit profile, and program; nothing here is a guarantee of a specific rate or approval, and no offer of financing is made until a full file review is completed.

If you are ready to act on this window, schedule a rate consultation or preapproval with Bond Peter Njoku, Licensed Mortgage Loan Originator in Texas, at Mortgage Funding Solutions. Reach me at www.bondmortgagesolutions.com or www.mfsolu.com to see how the current numbers apply to your situation.