ABOR Region: How Rates and Buydowns Shape Buying Power in October

What does a 7.18% mortgage rate mean for a buyer in the ABOR / Unlock MLS Region? With a median closed price of $400,000 across 2,420 sales in October, the monthly principal and interest payment at that rate is $2,168. This figure assumes a loan amount of $320,000 on a 30-year fixed loan. ALEX Intelligence modeled how buydowns alter this baseline to show their real-world impact on affordability. A standard 3-2-1 buydown reduces the interest rate to 4.18% in year one, cutting the monthly payment by $607 to $1,561. In year two, the rate rises to 5.18%, saving $415 per month, and in year three, it reaches 6.18%, saving $212. The total cost of this buydown is $14,808, or 3.7% of the median home price. A shorter 2-1 buydown offers a slightly different profile. It lowers the rate to 5.18% in the first year and 6.18% in the second. The total cost is $7,524, representing 1.88% of the median price. While these tools reduce immediate monthly costs, they require upfront capital that could otherwise be used for a larger down payment or closing costs. The data shows that while the median price dropped 1.2% from September and is 7.0% lower than October 2025, the high rate environment keeps monthly payments elevated. Buyers must weigh the temporary relief of a buydown against its total cost when evaluating purchasing power in this market. 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. Read more Central Texas market data on the ALEX blog: https://alex-companies.com/blog