Salado: How Mortgage Rates Shape Buying Power Today

What does a 7.32% mortgage rate mean for buyers in Salado today? With the median closed price at $498,000 across 123 sales in the rolling six months ending September 30, 2026, monthly payments are higher than in recent years, but strategic buydowns can bridge the gap. ALEX Intelligence modeled payment scenarios using a standard 20% down payment and a 30-year fixed loan at the current rate of 7.32%. At this rate, the principal and interest payment on a $498,000 home is approximately $2,737 per month. A common strategy to improve affordability is a temporary buydown, which lowers the interest rate for the first few years. For example, a 3-2-1 buydown reduces the rate to 4.32% in year one, saving about $761 monthly compared to the base rate. Over three years, this specific buydown costs roughly $18,564, or 3.73% of the median sale price. A shorter 2-1 buydown costs about $9,432 (1.89% of price) and lowers the rate to 5.32% in year one. These tools do not change the home's price, but they can make monthly payments more manageable during a period of elevated rates. Buyers should weigh the upfront cost of the buydown against their long-term plans and cash flow needs. The data reflects ABOR-listed sales only; total market figures may differ. Want a closer look? Reply or call George at 713.918.9951 and we'll set up a showing. Coverage: most home sales in Salado are listed in another MLS, which ALEX does not receive yet. The figures in this post count only sales listed in Unlock MLS (ABOR), so they describe part of the local market, not all of it. 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