If you’ve been watching the real estate market this year, you might be wondering: How are interest rates shaping home prices in Central Texas right now? It’s a common question I hear every week, especially from buyers trying to time their first purchase—and sellers wondering if now’s still a good time to list.
Let’s get straight to it: interest rates are impacting both pricing and buyer behavior, but not always in the way you’d expect.
According to Freddie Mac, as of July 2025, 30-year mortgage rates are hovering around 6.75%, up slightly from last year but far more stable than the rollercoaster ride of 2022 and 2023. This stability has helped ease buyer hesitations and increased mortgage applications by over 13% compared to the same period in the previous year.
So what does that mean for the Austin, Texas real estate market—and for buyers and sellers across Buda, Kyle, Round Rock, Georgetown, and beyond? Let’s break it down.
In high-demand areas like Austin, Buda (78610), and Leander (78641), we’re seeing price moderation rather than dramatic drops. Inventory is up about 20% year over year in Central Texas, which is giving buyers more room to breathe—and more room to negotiate.
Many sellers are no longer pricing aggressively high. They’re pricing strategically. If you’re selling a home in Austin, Texas, it’s still possible—but presentation and pricing strategy matter more than ever.
With higher rates, buyers are taking advantage of:
Builders and sellers alike are offering creative solutions to keep deals moving forward.
In areas like Pflugerville (78660) and Bastrop (78602), increased inventory has created more pricing flexibility. But in tighter submarkets like Dripping Springs or West Austin, demand still outpaces supply—keeping prices firm.
Brandon Holley, an Austin, Texas, Realtor and founder of Holley Homes Realty, says: “We’re in a more balanced market right now. That’s giving serious buyers a chance to negotiate—and helping sellers who are realistic still walk away with great results.”
Buyers looking for affordability should explore neighborhoods in:
These communities offer more new construction options, sometimes with builder-paid closing costs and lower interest rates thanks to partnerships with preferred lenders. Check out our New Construction Guide for more.
Whether you're thinking about buying a home in Central Texas or selling a home in Austin, Texas, the biggest shift today is predictability. Rates may not be low—but they’re not volatile. And with strong job growth, continued migration to Texas, and increasing inventory, we’re entering a healthier long-term market.
Every market has its opportunities—and this one is no exception. Whether you’re buying your first home or planning to sell, you need a strategic partner who knows the nuances of each Central Texas zip code.
Call or text Brandon Holley at 512.487.9242
Email Brandon Holley at brandon@holleyhomesrealty.com
Watch our latest market updates at Your Austin Home Guide | Holley Homes Realty
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Explore new builds with our New Construction Guide
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