Smithville: How Mortgage Rates Affect Buying Power Now

What does a 7.18% mortgage rate mean for a buyer in Smithville today? With the median closed price at $315,000 across 55 sales in the rolling six months ending October 31, 2026, monthly payments are significantly higher than they were a year ago when rates were lower. ALEX Intelligence modeled the impact of current financing costs on a typical Smithville purchase. For a home at the median price with a 20% down payment, the principal and interest payment at the current 7.18% rate is $1,707 per month. If a buyer opts for a 3-2-1 buydown, the total cost of this buydown is $11,652, or 3.7% of the home price. A shorter 2-1 buydown offers a different trade-off. It lowers the rate to 5.18% in year one and 6.18% in year two, costing $5,916 total (1.88% of the price). While these tools reduce immediate monthly burdens, they require upfront cash that could otherwise be used for a larger down payment or closing costs. The market reflects this pressure: median days on market have risen to 100 days, up 85.2% from the same period last year, as buyers weigh affordability against inventory. The median close-to-original list ratio sits at 93.7%, indicating that negotiated prices remain below asking levels for most transactions. Buyers should calculate their specific payment scenarios using the current rate of 7.18% sourced from Freddie Mac to determine if a buydown fits their budget or if waiting for rate adjustments is a better strategy. Want to see this home? Call or text George at 713.918.9951 for a private 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