Austin Mortgage Rates Just Dropped. Here’s What That Means for Buyers in 2025

Austin Buyers Just Got a Win

If you’ve been watching the Austin housing market, waiting for the right moment to buy, this might be it.

Mortgage rates just dropped from 6.5 percent to just above 6.1 percent. That might sound small, but it’s not. It means $162 in monthly savings on a $500,000 loan. Over time, that adds up to more than $57,000.

The Real Cost Savings of Today’s Rates

Let’s break it down.

In early September, buying a $600,000 home in Austin with $100,000 down meant a $3,161 monthly principal and interest payment. Today, that same loan would cost just $2,998 a month.

That’s a real savings of $162 every single month. Multiply that across a 30-year loan and you’ve saved enough to buy a car. Or to fund a full kitchen remodel. Or to reinvest right back into Austin real estate.

Why This Window Won’t Last

Inventory in Austin is still decent. Sellers aren’t moving unless they have to. But buyers are waking up. And once the available homes start to move, price pressure will follow.

Neighborhoods like Westlake, Northwest Hills, and Bee Cave are already seeing renewed activity. Buyers are stepping off the sidelines.

So the window we’re in right now, where affordability just improved but prices haven’t reacted yet, won’t last forever.

Your Next Step Could Save You Thousands

If you’ve been thinking about buying, now is the time to revisit your numbers. You might qualify for more home than you thought just a few weeks ago.

Let’s talk. I’ll help you break it down and see if this moment makes sense for you.

Let’s Make Smart Moves Together

Every buyer’s situation is different, but this interest rate shift is meaningful. It’s giving you more leverage in a market that still has opportunities.

I’m Jennifer S. Goodman, local Austin Realtor. Keeping YOU updated on living, loving, working and playing in Austin TX so YOU'RE always one step ahead... AT HOME.