Morningstar: How Mortgage Rates Affect Buying Power This Year
By George Arnold Alexander III, MPA · Associate Broker · 2026-10-19
Key figures · Morningstar · rolling 6 months ending Sep 30, 2026
- 34 homes sold in Morningstar in the 6 months ending Sep 30, 2026 (down 49.3% on a year earlier).
- Median sale price: $342,500 (down 3.5% on a year earlier).
- Median price per square foot: $181.
- Median days on market: 38.
- Median sale price as a share of the original list price: 95.4%.
- 39 homes for sale now, about 6.9 months of supply at the pace of the last six months.
Source: Unlock MLS, rolling 6 months ending Sep 30, 2026. Homes only (single-family, condo, townhome). Information deemed reliable but not guaranteed.
What does a 7.32% mortgage rate mean for buyers in Morningstar today? With the median home price at $342,500 across 34 closed sales in the rolling six months ending September 30, 2026, monthly payments are significantly higher than they were two years ago. A standard payment on a $274,000 loan (assuming 20% down) at the current rate is $1,882 per month.
ALEX Intelligence modeled how temporary buydowns can alter that picture for qualified buyers. A 3-2-1 buydown reduces the interest rate to 4.32% in year one, cutting the monthly payment by $523 and saving $6,276 in the first year alone. The total cost of this buydown is $12,744, or about 3.72% of the median sale price. A smaller 2-1 buydown costs $6,468 (1.89% of price) and reduces the rate to 5.32% in year one.
These figures are estimates based on principal and interest only. They do not include taxes, insurance, or HOA fees. While rates have shifted, the median days on market for Morningstar has dropped to 38 days from 99 days in the prior period, indicating that homes priced correctly are still moving despite higher borrowing costs. Buyers should calculate their specific payment scenarios before making an offer.
ALEX Intelligence estimate, not an appraisal.
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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
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George Arnold Alexander III, MPA
Partner, ALEX Companies
Associate Broker, Alexander Tiffany Southwest, LLC dba ALEX.realestate, et.al.
Texas License #574878-B · Broker License #565194-BB
Broker, ALEX Real Estate · North Carolina License #367733
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Source data: Unlock MLS closed sales, rolling 6 months ending Sep 30, 2026, n=34; Freddie Mac Primary Mortgage Market Survey, week of Oct 22, 2026
Licensed by the Texas Real Estate Commission. Broker: Alexander Tiffany Southwest, LLC · License #565194-BB.
Diane Hart Alexander, Chair & CEO, ALEX Companies · Designated Broker · #574877-B · George Arnold Alexander III, Partner, ALEX Companies · Associate Broker · #574878-B
Texas Real Estate Commission Information About Brokerage Services · TREC Consumer Protection Notice · trec.texas.gov
Diane Hart Alexander, Chair & CEO, ALEX Companies · Designated Broker · #574877-B · George Arnold Alexander III, Partner, ALEX Companies · Associate Broker · #574878-B
Texas Real Estate Commission Information About Brokerage Services · TREC Consumer Protection Notice · trec.texas.gov