Below is a simple chart where a home buyer can determine how much mortgage payment they can afford. Find the intersection of that number (the colored lines) and what the current interest rates are (at bottom of chart) and see how much home you can afford to purchase. For example, using the current 30-year rate of 6.10% (as of 1/29/26) a home buyer who can afford $2,500/mo could afford to buy a home around $400,000.
To see how much rates have dropped in the past year and the effect on that home buyer, they would pay about $330/mo less in Jan/2026 vs. 12 months prior.
We definitely saw more home buyer activity in January and fully expect this to continue as the year progresses, the economy grows and as interest rates drop further, as expected. Real estate markets across the U.S. have endured about 3 years of flat or stagnant growth. We believe 2026 will be the year things turn around, and, as someone who has been in real estate in Austin for 20 years, markets shift quickly when they do…so be ready to buy as soon as you can before home prices begin to rise.
(512) 853-0110 or robert@AustinTxHomeSales.com
