Mortgage Interest Rates And Home Prices Are Both Soaring Median home prices in Houston were $328,000 in February 2022 - a new record! That is a 19.3% increase from one year earlier. Now mortgage interest rates are topping 5%, have been around 3% for much of 2021. The Federal Reserve says the benchmark interest rate in the United States much increase to combat inflation. The Fed has indicated there will be more increases this year. In addition to rising home prices and mortgage rates, the inventory of homes for sale in Houston has been at historic lows for months. There is a huge gap between the supply of homes and the demand for them. All of this spells bad news for home buyers, many of whom will not be able to qualify for a home purchase because of the rising costs. And professional home buyers companies are also finding it difficult to purchase homes for repair and remodeling work.