What Lower Mortgage Rates Mean for Buying in South Austin

Are you wondering, “What do lower mortgage rates mean for buying a home in South Austin or Buda?” You’re not alone. As of September 4, 2025, Freddie Mac reported that the average 30-year fixed mortgage rate fell to 6.50%, sparking renewed interest among buyers and owners alike.

For those shopping for homes in ZIP codes 78748, 78745, 78610, and 78640—this shift could impact everything from monthly payments to your negotiating power. At Holley Homes Realty, we help Central Texas buyers and sellers understand how the market moves—and what that means for their goals.

Freddie Mac’s Update: A Turning Point for Buyers

According to Freddie Mac’s Primary Mortgage Market Survey®:

• The 30-year fixed-rate mortgage averaged 6.50%, down from 6.56% the previous week
• The 15-year fixed-rate mortgage dropped to 5.60%
• Refinances now make up 47% of all mortgage applications—the highest share since October

While these rates are still above 2020–2021 levels, the downward trend has sparked new interest among first-time homebuyers, move-up buyers, and investors across Central Texas.

Why This Matters for Buyers in 78748, 78745, 78610, and 78640

These ZIP codes represent some of the most active markets in the Austin, Texas area:

• 78748: Onion Creek, Texas Oaks, and Buckingham Estates offer a mix of new construction and established homes
• 78745: Western Trails and Cherry Creek attract urban buyers seeking quick access to downtown
• 78610 (Buda): Communities like Sunfield and Garlic Creek appeal to first-time buyers and growing families
• 78640 (Kyle): Crosswinds, 6 Creeks, and Plum Creek offer affordability with space

Lower rates improve buying power—meaning you may afford a more updated home, a better location, or lower monthly payments. In high-demand areas like Buda and South Austin, this also means increased competition.

Tips for Buyers: How to Leverage Lower Rates

If you're thinking about buying a home in Central Texas this fall, here are a few smart moves:

1. Get pre-approved now – Lock in a rate and understand your exact price range.
2. Explore builder incentives – Some builders are still offering rate buydowns or closing cost help.
3. Consider ZIP-specific options, such as 78748 and 78640, which often have lower taxes and newer inventory compared to urban-core ZIPs.
4. Ask about refinance strategy – If rates fall further, refinancing could save you thousands down the line.

We always recommend speaking with a trusted local lender who understands the Austin market. - CONTACT LENDER​

How Does This Affect Sellers?

If you’re selling a home in Austin, Texas, now might be the time to re-list or re-engage your agent. With more buyers returning to the market, especially in 78745 and 78610, we’re seeing stronger showing activity, increased open house traffic, and more serious offers on well-prepared homes.

To see how your home compares in today’s market, request a free home valuation in South Austin. - CLICK HERE​

Market Stats You Should Know

According to ABOR and local MLS data:

• Median home price in 78748: $455,000
• Median in 78610 (Buda): $399,000
• 78640 (Kyle): Median days on market dropped 12% since July
• Inventory in 78745 is down 8% from last quarter

“The rate drop may be just enough to get buyers off the sidelines. I believe urgency is returning to the market—especially under $400K.” — Brandon Holley, Broker/Owner, Holley Homes Realty

Final Thoughts: Your Next Step

Whether you're buying your first home, selling and upsizing, or relocating to Central Texas, now is the time to re-evaluate your plan. Mortgage rates may continue to trend down, but good inventory moves quickly—especially in South Austin (78748, 78745), Buda, and Kyle.

At Holley Homes Realty, 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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