Mortgage Rates Reach 7.40%: What Central Texas Buyers and Sellers Should Know

Updated October 12, 2026

Lower asking prices may be catching the eye of Central Texas homebuyers, but mortgage rates are making the monthly-payment calculation more complicated. Here’s what the latest figures say about the Austin–Round Rock–San Marcos housing market—and which numbers are still pending.

Mortgage rates climbed again

The national average rate for a 30-year fixed mortgage reached 7.40% on October 8, according to Freddie Mac. That’s up from 7.28% on October 1 and 6.30% a year earlier.

For illustration, principal and interest on a $400,000 loan over 30 years would be about $2,770 per month at 7.40%, compared with $2,737 at 7.28%—roughly $33 more per month from that one-week rate change. Property taxes, insurance, HOA dues, and other costs would add to the full payment. Freddie Mac’s figure is a national average, so buyers should request current quotes based on their own finances. www.freddiemac.com

Asking prices are lower than last year

In the Austin–Round Rock–San Marcos metro, the median listing price was $446,450 in September 2026, down 9.8% from September 2025, according to Realtor.com’s September report, published September 30. Active listings were up 1.4% year over year, and 27.3% of listings had a price reduction. www.realtor.com

Those figures describe homes offered for sale, not what buyers paid at closing. A lower metro median also does not mean every home has lost 9.8% of its value. Location, condition, price range, and the mix of homes on the market all matter. Buyers can use the figures as a reason to examine specific listings closely; sellers should compare their home with the competition available right now.

The latest closed-sales figures still cover August

As of October 12, the newest monthly report listed by Unlock MLS is its August 2026 Central Texas Housing Report, published September 15. Across the metro, 2,501 homes closed in August, down 7.3% from August 2025. The median closed price was $412,000, down 6.4%. The report counted 13,676 active listings, 5.1 months of inventory, and 2,623 pending sales, up 1.5% year over year. www.unlockmls.com

September’s median listing price and August’s median closed price are different measures from different months. The gap between them is not an average buyer discount. We’ll have a clearer picture of September transactions when Unlock MLS releases its next report.

What should you do with these numbers?

If you’re buying, revisit your payment range with a lender before touring or making an offer. Then compare homes within the communities and price ranges that fit that budget. A reduced asking price may create an opportunity, but the total monthly cost still has to work for you.

If you’re selling, start with recent comparable sales and today’s competing listings in your neighborhood. The metro figures provide context; the homes your prospective buyers are considering provide the more useful pricing test.

Taylor Realty Group can help you put the regional numbers in context for your next move in Austin, Round Rock, San Marcos, or the surrounding Central Texas communities.