HOUSTON, Texas (KTRK) — Marisa Guzman’s fully decorated townhouse in The Heights was the gift she always wanted to give herself.

“Christmas came early for me. Yes!” Guzman said:

Guzman, a lifelong renter, had hoped to purchase the townhouse, but with the average cost of Houston homes just under $340,000 plus interest, it felt more like a dream than a reality.

“Before I bought the house, I thought that even if I worked at a good job that I loved, it would take a few more years. Maybe it would be more than a few years before I could afford to buy a house,” Guzman said.

That’s why when he saw a house in the neighborhood that he liked, at a price he could afford and with a reasonable interest rate, he couldn’t say no.

“When this suddenly came on the market, I was shocked at the price, the location, the location, which is important. I kind of jumped on it,” Guzman said.

He’s one of the 38% of Houstonians who can afford a median-priced home.

“It feels great to say, ‘Let’s go to my house.’ This is truly my home, I won,” Guzman said.

Professionals like Thomas Mouton of the Houston Association of Realtors hope that rate will rise as the federal reserve cuts interest rates.

“Man, our market is improving. So it’s pretty stable right now. We’re seeing an increase in sales,” Mouton said.

Even though interest rates are reduced, these rates determine how much banks will pay, not the interest on your mortgage loan.

The hope is that banks will pass on lower interest rates to the borrower. The latest reduction reduced the interest rate to around 4.5%. The federal reserve plans to make further cuts next year. While people are pushing for better financing in the future, some are holding back.

“They broke down three and four years ago when interest rates dropped to 2 percent and 3 percent. That’s not the reality of our market right now,” Mouton said. he said.

Overall, Mouton said Houston is in a good spot. House prices are much lower than in cities of similar size.

Even though rates aren’t as low as they were a few years ago, he says now may still be a good time to invest.

“This is a nice home to invest in. Once they’ve paid off their mortgage or are close to it, it’s something they have in their war chest,” Mouton said.

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