What’s Happening with Mortgage Rates & Austin’s Housing Market (And What to Tell Your Clients)

Hey agents, let’s talk about what’s going on with mortgage rates and the Austin housing market—because your buyers and sellers are definitely asking. Here’s the latest and how you should be framing the conversation to keep them informed (and confident!).

Mortgage Rates: Where Are We Now?

Rates have been bouncing around a bit, but they’re still hovering in the mid-6% range. Right now, the average 30-year fixed is sitting around 6.65%-6.85%, depending on the lender and your client's situation.

The Mortgage Bankers Association is still predicting a slow decline as we move through 2025, so buyers waiting for a big drop might not see anything dramatic, but small improvements could be coming.

What to Tell Buyers:

•If they’re on the fence, remind them that waiting for a perfect rate may cost them more in home prices or competition.

•A small rate dip later doesn’t necessarily mean savings if home prices keep climbing.

•Date the rate, marry the house. They can always refinance later if rates improve.

Austin Housing Market: More Listings, Price Adjustments

According to the Austin Board of Realtors, here’s what’s shifted from January to February:

✔️ More homes hitting the market – Inventory jumped 19.1%, meaning buyers have more choices.

✔️ Sales picked up – More homes closed, up 13.5% from January.

✔️ Slight price dip – Median home prices dropped about 3.9% year-over-year, which could give buyers a little breathing room.

What to Tell Buyers:

• There aremore homes to choose fromthan just a month ago. That meansless pressure and potentially more negotiating power.

•Even though rates are still a factor, the price adjustments and extra inventory could make now a better time to buy than it was last year.

•If they’ve been waiting for the “right time,” it might be here.

What to Tell Sellers:

•More inventory = more competition. Pricing right from the start is critical. Overpricing will get them stuck on the market while others sell.

•Condition matters more now—homes that show well will sell faster. Staging, minor updates, and deep cleaning will help them stand out.

•Buyers have a little more leverage, so they should be ready for negotiations. That doesn’t mean giving their home away, but it does mean being open to realistic offers.

Final Takeaway

The market is moving—inventory is up, rates are still fluctuating, and prices are adjusting. Buyers have more options right now, but sellers can still win if they price and prep their homes right. As their go-to agent, make sure you’re helping them navigate this shift with solid advice, not just waiting on the sidelines.

Need help talking mortgage strategy with your buyers? Let’s connect—I’ve got you covered.