Spicewood: How Mortgage Rates Shape Buying Power in October

What does a 7.24% mortgage rate mean for a buyer in Spicewood today? With the median closed sale price at $638,750 across 30 transactions in September, the monthly principal and interest payment on a loan with a 7.24% note rate is $3,482. That figure sets the baseline for affordability before any lender credits or buydowns are applied. ALEX Intelligence modeled two common buydown structures to show how rates affect cash flow. A 3-2-1 buydown reduces the rate to 4.24% in year one, cutting the monthly payment by $971 compared to the standard rate. This temporary relief costs $23,676 upfront, or about 3.71% of the median sale price. A shorter 2-1 buydown lowers the rate to 5.24% in year one, saving $663 monthly, for a total cost of $12,024 over two years. These figures are estimates based on the median price and current market rates; they are not appraisals. Buyers should weigh the upfront cost against their expected time in the home. With 30 closed sales this month, the data reflects a market where rate sensitivity is a primary driver of transaction timing. The mortgage rate source is the Freddie Mac Primary Mortgage Market Survey for the week ending October 29, 2026. All calculations assume a 30-year fixed term and a loan amount of $511,000 on the median price of $638,750. 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