As mortgage rates climb, many Houston-area homebuyers are hurrying to close on their properties.
Others, meanwhile, are finding themselves unable to afford any deal at all.
Although housing remains relatively affordable in Houston, it's estimated that higher interest rates have cut about 10% of Houston households from the ability to buy in the local market.
Mortgage rates have risen by two percentage points already this year, tacking hundreds of additional dollars onto monthly payments. Last week, average rates climbed to an 11-year high of 5.11%.
Pending sales here have fallen for four consecutive weeks, according to the Houston Association of Realtors. And prices have climbed ... last month, the average home in Houston sold for about $400,000, an all-time record and a 32.5% increase over less than two years.
Local real estate agents expect prices to keep rising as inventories shrink. It's estimated that all the homes presently on the market in Houston would sell in just a bit more than a month at the current pace. A six-month supply is considered ideal.
And for many, even renting a nice place isn't an option. The average monthly rent for a single-family home has increased from $1,675 to $2,075 over the past 23 months, a 23.8% jump.
So for many, the cost of buying or renting satisfactory affordable housing in Houston is not so affordable these days.