Mortgage Rates in Katy, Texas — March 2026
Updated March 2026 | Based on Katy market data and regional lending conditions
Katy is a growing city in Texas with a population of 21,894. The current 30-year fixed mortgage rate in Katy is 6.87%, which is 0.22% above the national average. With a median home price of $263,000 and a 20% down payment of $52,600, homebuyers can expect a monthly principal and interest payment of approximately $1,381.
Current Mortgage Rates in Katy, TX
Below are the current average mortgage rates available in the Katy area as of March 2026. Rates vary by lender, credit score, and loan-to-value ratio. Use our free calculator above to see your personalized estimate.
| Loan Type | Rate | National Avg | Difference |
|---|---|---|---|
| 30-Year Fixed | 6.87% | 6.65% | +0.22% |
| 15-Year Fixed | 6.09% | 5.89% | +0.2% |
| 5/1 ARM | 6.32% | 6.15% | +0.17% |
| FHA | 6.56% | 6.25% | +0.31% |
| VA | 6.31% | 6.05% | +0.26% |
| Jumbo | 7.12% | 6.85% | +0.27% |
Katy Housing Market Overview
The Katy housing market offers relatively affordable housing compared to many major cities. The median household income in Katy is $56,100, and the cost of living index is 88.3 (national average = 100). Based on the 28% affordability rule, you would need an income of approximately $77,229 to comfortably afford the median-priced home in Katy, which exceeds the current median household income.
Monthly Payment Breakdown for Katy
Based on the median home price of $263,000 with 20% down ($52,600), here is what you can expect to pay monthly in Katy:
15-Year vs. 30-Year Mortgage in Katy
Choosing a 15-year mortgage in Katy at 6.09% instead of a 30-year at 6.87% would save you $175,680 in total interest over the life of the loan. However, your monthly payment would be $1,786 instead of $1,381 — an increase of $405 per month.
Calculate Your Katy Mortgage Payment
Use our free calculator to get a personalized estimate based on your loan amount, interest rate, and term.
Open Free CalculatorFrequently Asked Questions About Mortgages in Katy
What are the current mortgage rates in Katy, TX?
As of March 2026, the average 30-year fixed mortgage rate in Katy, Texas is 6.87%, while the 15-year fixed rate is 6.09%. FHA loans average 6.56% and VA loans 6.31%. These rates are 0.22% above the national average of 6.65%.
How much is a monthly mortgage payment in Katy?
Based on the median home price of $263,000 with 20% down, the estimated monthly mortgage payment in Katy is $1,381 for principal and interest. Including property taxes of $421/month, the total monthly housing cost is approximately $1,802.
What income do I need to buy a home in Katy?
Using the 28% rule, you would need an annual income of approximately $77,229 to afford the median-priced home in Katy at $263,000. The median household income in Katy is $56,100. This means most households would need to either earn above the median or consider homes below $263,000.
Is Katy a good place to buy a home in 2026?
Katy offers a below-average cost of living with a cost of living index of 88.3 (national average = 100). The property tax rate in Texas is 1.92%, which is above the national average. Katy has a population of 21,894 and offers a very affordable lifestyle.
Mortgage Rates in Other Texas Cities
Related Tools & Guides
Last updated: March 2026. Rates are approximate averages based on regional lending data for the Katy, Texas area. Individual rates may vary by lender, credit score, loan amount, and other factors. Use our free calculator for a personalized estimate.