What is the current mortgage rate for a 30-year fixed loan?

As of February 26, 2026, the average 30-year fixed mortgage rate is 5.98%, according to Freddie Mac's weekly Primary Mortgage Market Survey — the first reading below 6% since mid-2022.

Will mortgage rates continue to drop in 2026?

Economists and housing analysts have mixed outlooks. The NAHB projects an average of around 6.17% for 2026, suggesting rates may tick back up slightly from current lows. However, a softening economy or additional Federal Reserve rate adjustments could push rates lower. The safest approach is to act when rates align with your personal financial goals rather than trying to time the market perfectly.

What credit score do I need to get the best mortgage rate?

Generally, borrowers with credit scores of 740 or higher qualify for the most competitive mortgage rates. Scores between 700-739 still qualify for good rates, though slightly higher. An Azalea Mortgage loan officer can review your credit profile and help identify strategies to maximize your rate eligibility.

How much does a 1% mortgage rate change affect my monthly payment?

On a $300,000 loan, each 1% change in interest rate affects your monthly payment by approximately $170-$180. On a $400,000 loan, that figure rises to approximately $230-$240 per month — or roughly $2,800 per year.

Can I get a mortgage in Tyler, TX with a low down payment?

Yes. Several loan programs offer low or no down payment options, including FHA loans (3.5% down), VA loans (0% down for qualifying veterans and service members), USDA loans (0% down for eligible rural and suburban properties), and conventional loans (as low as 3% down for first-time buyers). Azalea Mortgage specializes in helping Tyler-area buyers navigate all of these programs.

Tyler, TX Housing Market Update — May 2026 Report

Jason Yearty
1 day ago
5 min read

If you've been watching Tyler, TX real estate this spring, the headline of May 2026 is simple: the market is balancing out. After several years of sharp price swings, inventory whiplash, and bidding wars, Tyler is starting to look more like the East Texas market longtime locals remember — active, healthy, and steady. Homes are still selling, sellers are still moving on with their lives, and buyers finally have a little room to breathe.

The most striking recent data point: the typical Tyler home sold for around $325,000 in March 2026, up roughly 8.4% over the prior year, according to Redfin. At the same time, homes are going pending faster than they did 12 months ago — about 52 days on market versus 62 days a year earlier. That combination of rising prices and quicker pending times tells you the underlying demand for Tyler real estate is still very much alive.

At Azalea Mortgage, we talk to East Texas buyers and sellers every week, so we wanted to share what the numbers actually look like across Tyler and Smith County right now — and what they mean if you're thinking about a move this summer.

Tyler, TX Home Prices

The median sold price in Tyler is hovering in the low-to-mid $300,000s in spring 2026, with Redfin pegging March 2026 at about $325,000 and Movoto reporting a May 2026 median list price of $350,000. Price per square foot is also rising, with Redfin tracking Tyler at roughly $156 per square foot, up about 12.6% year over year.

For context, the Texas statewide median home price has been running in the mid-$330,000s per Texas Real Estate Research Center data, and the U.S. median sits well above $400,000. Tyler is still meaningfully more affordable than Texas's biggest metros like Austin and Dallas-Fort Worth, and dramatically more affordable than the national figure. For East Texas families, that math matters: the same household income stretches further here.

Housing Inventory and Days on Market

Inventory is the part of the story that has changed the most. Smith County's active listing count has expanded significantly in the last 12 months. Depending on the data source, there are roughly 1,900 to 2,600 active listings across Smith County, with new homes hitting the market at a steady weekly pace.

Tyler's months-of-supply has crept up to about 5.3 months, well above the 2- and 3-month figures we saw at the peak of the seller's market in 2022. The traditional rule of thumb is that 4 to 6 months of supply is a balanced market — so Tyler is no longer the white-hot seller's market it was, but it's not a dramatic buyer's market either. Days on market continues to come down compared to last year, sitting around 52 days in spring 2026 — a meaningful improvement from late 2024 and early 2025 when many homes lingered past 90 days.

Sales Activity

Sales volume is steady. Roughly 95 homes closed in Tyler in March 2026, per Redfin — flat to slightly up versus the same period last year. The fastest-moving price band remains the $250,000 to $400,000 segment, which captures most first-time buyers, move-up families, and households relocating for Tyler's healthcare and university jobs.

The 30-year fixed mortgage rate averaged 6.46% in early April 2026, per the Freddie Mac Primary Mortgage Market Survey, and most economists expect rates to drift into the mid-6s through the back half of the year. For a deeper look at what current rates mean for your monthly payment, see our April 2026 mortgage rate update.

Neighborhood Spotlight: Lindale and North Smith County

This month we're spotlighting Lindale and the broader North Smith County corridor along I-20 and Highway 69. Lindale has quietly become one of the most popular places to land for buyers who want a small-town feel, strong schools, and an easy commute into Tyler proper. Newer construction along FM 16 and Highway 69 has added meaningful inventory at price points often a notch below comparable South Tyler homes, and the lifestyle pull — Cannery District restaurants, Picker's Pavilion, easy Lake Tyler access — keeps attracting young families and retirees alike. If you're a buyer priced out of Hollytree or Cumberland, Lindale and neighboring Mineola are worth a serious look this spring.

What This Means for Buyers and Sellers

For buyers, the May 2026 market offers more choice and a little more negotiating room than this time last year. Inspection requests, repair credits, and closing-cost help are back on the table in many Tyler transactions. Inventory expansion plus mortgage rates that have stabilized in the mid-6s mean you don't have to make rushed offers — but the strongest, well-priced homes still move quickly, so come pre-approved and ready. For sellers, pricing strategy is everything: homes priced to the current market sell, while homes priced to 2022 peak comps tend to sit and ultimately reduce.

Local fundamentals supporting the market remain strong. Smith County is anchored by 4,000+ employee health systems UT Health East Texas and CHRISTUS Trinity Mother Frances, plus the University of Texas at Tyler and Tyler Junior College. Unemployment is hovering near 3.4%, and Tyler Economic Development Council projections call for roughly 12,000 new jobs a year over the next five years. New construction is adding to long-term supply, including the Landmark @31 apartments that broke ground on May 7, 2026, per the Tyler Morning Telegraph.

Frequently Asked Questions

Is Tyler, TX a good place to buy a home in 2026?

Yes. Tyler offers a strong combination of relative affordability, steady job growth anchored by healthcare and education, and a manageable cost of living compared to Texas's biggest metros. With inventory expanding and days on market shortening compared to last year, May 2026 is a workable time for prepared buyers to find the right home in East Texas.

Are home prices going up in Tyler, TX?

Yes — modestly. According to Redfin, Tyler's median sold price was up approximately 8.4% year-over-year as of March 2026, and price per square foot has risen about 12.6% over the same period. The gains are more measured than during the 2021–2022 boom, but Tyler home values are still appreciating.

What is the average home price in Tyler, TX?

The median sold home price in Tyler is approximately $325,000 as of March 2026 per Redfin, while May 2026 median list prices are running closer to $350,000 according to Movoto. Actual prices vary widely by neighborhood, with South Tyler and Hollytree commanding premiums and Lindale and Whitehouse offering more budget-friendly options.

Is Tyler, TX a buyer's or seller's market right now?

Tyler is currently best described as a balanced market trending slightly buyer-friendly. With roughly 5.3 months of supply and days on market still under two months, sellers retain meaningful leverage while buyers finally have more selection and a little room to negotiate.

How does Tyler, TX compare to the rest of Texas?

Tyler is more affordable than nearly every major Texas metro. The Tyler median price in the low-to-mid $300,000s sits well below Austin, Dallas-Fort Worth, and Houston levels, with healthier inventory dynamics than several larger Texas cities in spring 2026.

Ready to Make a Move?

Whether you're buying your first home or selling your current one, the Tyler housing market has opportunities. Contact Azalea Mortgage today to get pre-approved and start your home journey in East Texas. Reach out through our contact page to connect with a local lender who knows Tyler, Smith County, and the surrounding East Texas market.