Several local real estate experts said rising interest rates are a growing concern for residents in Montgomery County and The Woodlands area. Home interest rates are the percentage that a lender charges to borrow money to purchase a home.
What you need to know
Data shows interest rates are 6.23%-6.40% as of late April, which is more than double the all-time low of 2.65% from January 2021, according to The Woodlands-based Christine Hale Realty Group. Additionally, annual home sales in The Woodlands were higher in 2021, but the market has seen a decrease since 2022, according to Christine Hale Realty Group.
“Since 2021, mortgage interest rates began to steadily increase through 2025 and now we are starting to see a little bit of a downward trend with rates at their lowest this month in the past three spring purchasing seasons,” said Realtor associate Christine Hale.
What else?
Despite the hike in interest rates, Chanel Raesis, director of agent development for CB&A and board member for the Houston Association of Realtors, said buyers are still purchasing because they want stability in long-term equity, especially in the luxury property market.
In The Woodlands market, data from the Texas A&M Real Estate Center shows that there were 1,700 home sales in 2025 compared to 2021, when there were 3,100 sales.
However, while overall home sales numbers have decreased, the highest-priced homes represent a larger portion of home sales, according to recent data from the Texas A&M Real Estate Center. In 2025, 18.94% of home sales in The Woodlands were $1 million or more, while in 2021, those homes represented 9.77% of home sales, according to the data.
The impact
Interest rates were lowest during the pandemic at roughly 3.11%-3.88%, according to data from Christine Realty Group.
“Interest rates slowed the pace of the market compared to 2021 when we saw low rates, but buyers are adapting, so instead of not purchasing, they’re being more selective and strategic with purchasing,” Raesis said
Other Realtors said there may be fewer buyers in the market if rates remain high.
“Desirable properties will still sell no matter what. Sellers will have to continue to price aggressively and present a top-tier product,” The Woodlands Realtor Melody Pevateaux said.
