Buda: How Mortgage Rates Shape Buying Power in October

What does a 7.18% mortgage rate mean for a buyer in Buda today? With the median home price at $361,990 across 57 closed sales in October, the monthly principal and interest payment on a loan with a $289,592 balance is $1,962. A 3/2/1 buydown can lower that first-year payment to $1,413, saving $549 per month, while a 2/1 buydown reduces it to $1,587, saving $375 monthly. ALEX Intelligence modeled these scenarios using the median sale price and current market rates to show how buydowns affect affordability. The total cost of a 3/2/1 buydown is $13,392, or 3.7% of the median price, while a 2/1 buydown costs $6,804, or 1.88% of the median price. These figures represent principal and interest only, based on a 30-year fixed loan at 7.18%. The data shows that even with higher rates, buyers can use buydowns to manage monthly cash flow. The median price per square foot in Buda rose 2.3% from the prior period to $181, while the median home size increased 3.8% to 1,995 square feet. These adjustments reflect the current market conditions where financing costs play a critical role in purchasing decisions. The mortgage rate data comes from the Freddie Mac Primary Mortgage Market Survey for the week of November 5, 2026. This analysis uses actual closed sales and current rate environments to illustrate how buydowns can bridge the gap between buyer budgets and market prices. 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