Liberty Hill: How Rates and Buydowns Shift Buying Power in October

What does a 7.18% mortgage rate mean for a buyer in Liberty Hill today? With the median closed sale price at $474,900 across 71 transactions in October, the monthly principal and interest payment on a standard loan comes to $2,574. This figure represents the baseline cost of borrowing before any lender incentives are applied. ALEX Intelligence modeled two common buydown scenarios to show how these costs translate into monthly relief. A 3-2-1 temporary buydown reduces the interest rate to 4.18% in year one, cutting the monthly payment by $721 for that first year at a total cost of $17,592. In year two, the rate rises to 5.18%, still saving $493 per month compared to the standard rate. A shorter 2-1 buydown offers similar relief for just two years at a lower upfront cost of $8,940. These calculations assume a median sale price of $474,900 and are based on current market rates. While the median price rose slightly by 0.5% from September, it remains 13.6% lower than October of last year. Buyers using these tools can effectively lower their monthly outlay during the initial years of the loan, though the cost is paid upfront or rolled into the loan balance. The data reflects a market where 71 homes sold in October, with new construction accounting for 44 of those closings. The median price per square foot stands at $193, down 6.3% from a year ago. Understanding these rate impacts helps buyers evaluate whether a buydown makes financial sense given their specific budget and timeline. ALEX Intelligence estimate, not an appraisal. 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