Travis County: How Rates Shape Buying Power in August

How does a 7.28% mortgage rate reshape what buyers can afford in Travis County? With the median home price at $495,000 across 1,127 closed sales in August, the monthly principal and interest payment on a standard 30-year fixed loan comes to $2,709. This figure represents the baseline cost of borrowing before any lender incentives are applied. ALEX Intelligence calculated the financial impact of common buydown structures using the current median price and rate. A 3-2-1 buydown reduces the interest rate to 4.28% in year one, 5.28% in year two, and 6.28% in year three. This strategy saves buyers $754 per month in the first year alone, with total savings of $18,384 over the three-year period. The cost to purchase this buydown is approximately 3.71% of the median home price. Alternatively, a 2-1 buydown offers a rate of 5.28% in the first year and 6.28% in the second year. This option costs $9,336 total, or about 1.89% of the median sale price, providing immediate relief for two years without the extended duration of the three-year plan. These figures are ALEX Intelligence estimates based on a principal and interest calculation only; they do not include taxes, insurance, or HOA fees. The data shows that while the median price dropped 3.0% from July to $495,000, the high interest rate environment means financing costs remain a dominant factor in monthly affordability. Buyers should weigh the upfront cost of a buydown against their long-term holding plans and cash flow needs. The current market reflects a balance where price adjustments are occurring alongside significant financing considerations. This week's 5 best values under $1,000,000, ranked by the ALEX deal score: 1. 2818 E 22nd ST # 2, Austin TX 78722 · MLS #9684980 Listed at $589,999, 3 bed, 2.5 bath, 1,930 sq ft. Listed 24% below the ALEX valuation; 39% under the local price per sq ft; price reduced 28% from original. See it on alex.realestate: https://www.alex.realestate/listing-detail/1175503890/2818-E-22nd-ST-2-Austin-TX 2. 2818 E 22nd ST # 1, Austin TX 78722 · MLS #2184899 Listed at $614,999, 3 bed, 2.5 bath, 1,930 sq ft. Listed 25% below the ALEX valuation; 36% under the local price per sq ft; price reduced 27% from original. See it on alex.realestate: https://www.alex.realestate/listing-detail/1178148054/2818-E-22nd-ST-1-Austin-TX 3. 8912 China Rose DR, Austin TX 78724 · MLS #3328844 Listed at $275,000, 3 bed, 2 bath, 1,704 sq ft. Listed 18% below the ALEX valuation; 45% under the local price per sq ft; price reduced 21% from original. See it on alex.realestate: https://www.alex.realestate/listing-detail/1176971231/8912-China-Rose-DR-Austin-TX 4. 7004 E Meadow Bend DR, Austin TX 78724 · MLS #1290393 Listed at $324,999, 4 bed, 2 bath, 1,599 sq ft. Listed 19% below the ALEX valuation; 31% under the local price per sq ft; price reduced 24% from original. See it on alex.realestate: https://www.alex.realestate/listing-detail/1175312238/7004-E-Meadow-Bend-DR-Austin-TX 5. 3000 Cohoba DR, Austin TX 78748 · MLS #9178453 Listed at $399,000, 3 bed, 2.5 bath, 1,788 sq ft. Listed 28% below the ALEX valuation; 25% under the local price per sq ft; price reduced 28% from original. See it on alex.realestate: https://www.alex.realestate/listing-detail/1175239161/3000-Cohoba-DR-Austin-TX Want a closer look? Reply or call George at 713.918.9951 and we'll set up a showing. Data from Unlock MLS. Information deemed reliable but not guaranteed. Model outputs are ALEX Intelligence estimates, not appraisals. View and join any or all of our communities — AI, quantum, and real estate: https://alex-companies.com/reports/linkedin-groups If there's an AI, quantum, or real estate community you'd like to see us convene, tell us — this portfolio grows by request. MIT, Nvidia, Google & IBM-Trained. Cross Domain-Expert: Quantum, AI, Ethics, Sovereignty, Intelligence, Philanthropy. Solepoint Planning. VUI AI Cloud Architect. AI Certifications Development. Quant/AI Instructor. Castor Venture Club Member. Associate Broker. George Arnold Alexander III, MPA Director, ALEX Companies Associate Broker, Alexander Tiffany Southwest, LLC dba ALEX.realestate, et.al. Texas License #574878-B · Broker License #565194-BB Broker, ALEX Real Estate · North Carolina License #367733 Independent Broker, ALEX Real Estate · Colorado License #II.100112456 [email protected] · +1 713.918.9951