Blanco County: How Mortgage Rates Affect Buying Power

What does a 7.11% mortgage rate mean for buyers in Blanco County today? With the median closed price at $578,125 across 48 sales in the rolling six months ending Oct 31, 2026, monthly payments are significantly higher than they were last year when rates were lower. ALEX Intelligence modeled buying power using a loan amount of $462,500 on a median-priced home at the current rate of 7.11%. The principal and interest payment is $3,111 per month. To put this in perspective, a 3-2-1 buydown would reduce that first-year payment to $2,237, saving $874 monthly, but it costs $21,312 upfront. A 2-1 buydown offers a smaller reduction, dropping the first-year payment to $2,514 for a cost of $10,824. The data shows that while prices have risen 24.1% compared to the same period last year, the higher interest rate environment is the dominant factor affecting affordability right now. Buyers are paying more for homes, but the cost of borrowing has increased even faster, compressing purchasing power. The median price per square foot also rose 17.9% year-over-year to $298.27, reflecting strong demand despite these rates. For those considering a purchase, understanding the trade-off between a lower initial payment and the upfront cost of a buydown is critical. The market remains active with 48 closed sales in the last six months, but financing terms now play a larger role in determining what buyers can afford than they did previously. https://alex.realestate 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