The truth about affordability, timing, and what buyers in Bryan–College Station need to know right now.
If there’s one topic that has dominated real estate conversations lately, it’s interest rates. Whether you’re a first-time buyer, a veteran using your VA benefits, or a family relocating for a position at Texas A&M, you’ve likely asked yourself: “Should I wait for rates to drop before I buy?”
It’s the question I hear every single week. The truth is that while interest rates dramatically affect affordability, waiting for them to fall isn’t always the “win” it seems to be. In fact, interest rates affect your buying power far more than they affect home prices.
Let’s break down the 2026 market dynamics so you can make a decision based on math, not headlines.
What Exactly is “Buying Power”?
Buying power isn’t just a number on a pre-approval letter. It is:
- How much home you can afford…
- At a monthly payment you are comfortable with…
- Based on today’s interest rates and your financial profile.
Most buyers shop for houses based on price. Professionals shop based on monthly payment. A $2,200 monthly payment buys a very different lifestyle at 4% versus 6.5%.
The “Cost of Waiting” Math
As we move through 2026, the market is finding a new rhythm. While rates have moderated from their 2023 peaks, they are hovering in the low 6% range (as of early January 2026).
Consider this real-world example for a $400,000 home:
- At 6% Interest: Your principal and interest is roughly $2,278/mo.
- At 7% Interest: That same house jumps to $2,528/mo.
That $250 difference per month might tempt you to wait for a 5% rate. But here is the “hidden” catch: When rates drop, competition explodes. In Bryan–College Station, a 1% drop in rates typically brings a wave of buyers back to the market, which pushes home prices up. You might save $200 on interest but end up paying $30,000 more for the house.
o help you visualize how interest rates shift your monthly budget, here is a comparison for a $400,000 home in Bryan–College Station.
This table assumes a 30-year fixed-rate mortgage with a 5% down payment (typical for many conventional buyers in our area).
Impact of Interest Rates on a $400,000 Home
| Interest Rate | Principal & Interest (Monthly) | Estimated Total Monthly Payment* | Buying Power Difference |
| 5.5% | $2,158 | $2,858 | Ideal Scenario |
| 6.0% (2026 Avg) | $2,278 | $2,978 | +$120 / month |
| 6.5% | $2,402 | $3,102 | +$244 / month |
| 7.0% | $2,528 | $3,228 | +$370 / month |
| 7.5% | $2,657 | $3,357 | +$499 / month |
Note: Estimated Total Monthly Payment includes estimated property taxes, homeowners insurance, and PMI (Private Mortgage Insurance). Since Texas property taxes vary significantly by school district (CSISD vs. BISD), these are averages.
Why Bryan–College Station is a “Micro-Market”
Our region doesn’t always follow national trends. In 2026, the BCS area remains resilient because:
- Texas A&M Demand: Faculty, staff, and medical professionals create a constant flow of year-round relocation.
- Stable Job Growth: Expansion in healthcare and engineering keeps our local economy insulated from broader volatility.
- Rent vs. Buy: With local rents continuing to climb, owning a home—even at current rates—is often the smarter long-term wealth play.
“Marry the House, Date the Rate”
This phrase is more relevant in 2026 than ever. If you find the right home in the right neighborhood today, you can lock in the price now.
- Buy Now: You gain the home you want, start building equity, and avoid the bidding wars that will inevitably return if rates hit 5%.
- Refinance Later: Rates are temporary; your purchase price is permanent. If rates drop significantly in 2027 or 2028, you can refinance your loan to lower that payment.
Strategies for 2026 Buyers
- VA Buyers: You have a massive advantage this year. With 0% down and no PMI, your buying power is naturally higher than most.
- First-Time Buyers: Focus on “Buyability.” Look for sellers willing to offer rate buydowns—this is a common 2026 strategy where the seller pays to lower your interest rate for the first few years.
- Move-Up Buyers: Inventory has increased by nearly 9% over the last year. You have more choices and more negotiation leverage than we’ve seen in nearly a decade.
Final Thoughts: Your Life > The Headlines
The best time to buy a home isn’t when a chart says so—it’s when you are financially ready and your life requires a move. In 2026, buyers in Brazos County have more power to negotiate repairs, closing costs, and price than they have had in years.
Would you like a personalized “Buying Power Analysis” to see exactly what your monthly payment would look like at today’s rates?