Does the oil and gas market in Houston affect the housing market and mortgage rates?


In a state as dependent on the energy industry as Texas, oil and gas markets profoundly affect the housing market. In boom years, there are plenty of buyers and the housing prices rise. In bust years, sellers vastly outnumber buyers and prices decline. However, Houston’s economy has diversified considerably, so slumps in the gas and oil markets don’t affect it as much as other parts of the state.

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Mortgage rates vary by state

Houston home sales hit record highs in June, 2015, so while some decline is expected, it is unlikely to be severe. Mortgage rates do vary somewhat by state, and that depends on the local economy. If the economy is poor, lenders reduce rates to entice home buyers. When the economy is booming, people have jobs and rates may go higher.

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