Lockhart: How Rates Shape Buying Power in October

What does a 7.18% mortgage rate mean for a buyer in Lockhart today? With the median closed price at $329,800 across 23 sales in October, monthly principal and interest payments sit near $1,787 on a standard 20% down payment. That baseline shifts significantly when buyers use buydowns to lower their initial rate. ALEX Intelligence modeled the cost of two common buydown structures for a median-priced home. A 3-2-1 buydown reduces the note rate to 4.18% in year one, saving $500 per month initially, but costs $12,180 total over three years. A 2-1 buydown brings the rate to 5.18% in year one for a total cost of $6,180. These figures assume a 20% down payment and principal-and-interest payments only. The market context matters here. Median prices rose 36% compared to October 2025, while the median days on market jumped 128% year-over-year to 73 days. The share of homes selling below original list price also increased by 10.7% versus last year. Buyers using buydowns can offset higher rates temporarily, but the total cost represents roughly 3.7% of the median sale price for a 3-2-1 structure and 1.9% for a 2-1 structure. These estimates are based on ALEX Intelligence analysis of October closed sales and current Freddie Mac rate data. They do not include taxes, insurance, or HOA fees. The data reflects single-family homes with prices net of seller-paid concessions. 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