How Much Home Can I Afford in Central Texas Right Now?

If you're wondering, "How much house can I actually afford in Central Texas?"—you're not alone. With shifting interest rates, growing inventory, and major builder incentives across South Austin, Buda, and Kyle, your buying power may be higher than you think.

At Holley Homes Realty, led by Brandon Holley, we specialize in helping buyers—especially first-time and move-up buyers—get crystal clear on what’s possible before stepping into the market. Whether you're targeting 78748, 78610, 78640, or you're open to exploring all of Central Texas, we will connect you with the right lender to help you calculate your true affordability and uncover hidden savings.

Why Interest Rates Matter More Than You Think

Let’s take a look at a real-world example:

• Buyer A: Buys a $350,000 home at6.5% interest with 5% down
  • Monthly payment (P&I only): ~$2,098
• Buyer B: Buys the same $350,000 home at3.99% interest with 5% down
  • Monthly payment (P&I only): ~$1,771

That’s a difference of $327/month—or nearly $4,000 per year.

Your interest rate can have just as much impact on your monthly payment as the home price itself. This is why understanding your actual mortgage eligibility is the first step to shopping smart.

“We’ve had buyers get surprised—in a good way—when they find out they can afford more home or lock in a better rate by using one of our preferred lenders.” — Brandon Holley, Broker/Owner, Holley Homes Realty.

What Goes Into Your Affordability?

When the lender runs a full Home Affordability Check, they look at:

• Current mortgage rates and lender programs
• Property tax rates by city (South Austin, Buda, Kyle, etc.)
• HOA fees, if applicable
• Insurance estimates based on ZIP Code
• Your credit, income, and debt ratio

Other factors will include builder incentives, down payment assistance, and closing cost grants available in Central Texas, especially for:

• First-time buyers
• Teachers, nurses, and first responders
• Military and veteran buyers (VA loans)

Local Affordability Highlights by Area

South Austin – 78748

• Texas Oaks, Buckingham Estates, Tanglewood Forest
• Close to Southpark Meadows, I-35, and MoPac
• Homes range: $325K–$425K with resale and some new builds

Buda – 78610

• Sunfield, Garlic Creek, Whispering Hollow
• Excellent family amenities and newer schools
• Starting prices: mid $300Ks with incentives

Kyle – 78640

• Crosswinds, 6 Creeks, Anthem
• Energy-efficient new construction homes
• Homes from low $300Ks

Plus: We’re seeing value in Manchaca (78652), Easton Park (78617), and Bastrop (78602) as well—don’t overlook the outer ZIPs!

Why Now Is a Window of Opportunity

According to Freddie Mac, rates are expected to trend downward heading into 2025.

But: 

• Inventory is rising now, which means less competition. 
• Builder incentives are at a seasonal peak. 
• Sellers are flexible—we’re negotiating buy-downs and repair credits again!

Waiting could mean losing leverage or paying more if rates drop and buyers flood back into the market.

Ready to find what you can afford? --> Sharon Kane Loan Officer​

If you’re thinking about buying a home in Austin, Buda, Kyle—or anywhere in Central Texas—don’t guess. Let Brandon Holley and the team at Holley Homes Realty help you plan with confidence.

We’ll connect you with a trusted lender, show you move-in ready homes, and walk you through the entire process step by step.

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At Holley Homes Realty, led by Brandon Holley, we’ll help you time your move and navigate every step with confidence.

Real Deals. Real Stats. Real Estate You Can Trust

Brandon Holley | Broker/Owner | Holley Homes Realty

512.487.9242 | brandon@holleyhomesrealty.com

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