AUSTIN, Texas (Oct. 22, 2026) - Austin mortgage rates are holding steady but high, and the next big test for buyers comes Oct. 27 and 28, when the Federal Reserve meets again, says Sarah Maddali, REALTOR® and team leader of Serendipity Realty Group at Compass. Sarah Maddali and Serendipity Realty Group at Compass are urging Austin buyers to plan around published numbers, not predictions, as rates, the Fed and Election Day all land within two weeks.
The 30-year fixed-rate mortgage averaged 7.40% in Freddie Mac's Primary Mortgage Market Survey for the week of Oct. 15, 2026, unchanged from the week before and up from 6.27% a year earlier. The 15-year fixed averaged 6.71%. Freddie Mac publishes its next weekly average today, Thursday, Oct. 22.
The Federal Reserve raised its benchmark federal funds rate by a quarter point to a range of 3.75% to 4.00% on Sept. 16, 2026, in a 12-0 vote. Its next scheduled meeting is Oct. 27 and 28. The Fed doesn't set mortgage rates directly, but its decisions and statements can move the bond market that mortgage rates follow.
Buyers are feeling it. The Mortgage Bankers Association's weekly survey for the week ending Oct. 16 showed purchase applications down 7% from the week before and 18% from a year earlier, even as the average 30-year contract rate in that survey eased to 7.41% from 7.50%.
In Central Texas, Unlock MLS reported that closed home sales across the Austin-Round Rock-San Marcos metro fell 14.8% year over year in September to 2,223, while the median price rose 1.4% to $421,000. The metro had 5.4 months of inventory, and active listings inside the city of Austin were down 10.3% from a year earlier.
Austin voters also have local decisions on the Nov. 3 ballot, including Proposition A, a $260 million parks bond, and Proposition B, a $35 million libraries bond, as reported by FOX 7 Austin. Early voting is under way.
"Here's what I'd actually do: stop waiting for the perfect rate and start shopping the house and the terms," said Sarah Maddali. "With 5.4 months of inventory across the metro, a lot of sellers would rather help with closing costs or a rate buydown than cut their price again. Get real numbers from a lender this week, then let's find the home that works at today's rate, not a guess about next month's."
What Austin home buyers can do this month:
Get Loan Estimates from at least two lenders on the same day, so you're comparing the same rate environment side by side.
Ask about seller concessions. With 5.4 months of inventory metro-wide, closing-cost credits or a seller-paid rate buydown can be on the table.
Mark the dates: Freddie Mac's weekly average every Thursday, the Fed's statement on Oct. 28 and Election Day on Nov. 3.
Austin buyers can find Sarah's free buyer and relocation guides at https://sarahmaddali.com/links/.
About Serendipity Realty Group
Serendipity Realty Group is an Austin, Texas real estate team led by Sarah Maddali, REALTOR® and Military Relocation Professional (MRP). Before real estate, Sarah worked in physical therapy, and she moved into real estate after her own first home purchase left her feeling like nobody was in her corner. Since 2016, Sarah and her team have closed 220+ transactions and helped flip 22+ homes around Austin, and she has been recognized by Austin Real Producers. The team helps first-time home buyers, relocating families and sellers across Austin, South Austin and the surrounding Hill Country. Serendipity Realty Group is a real estate team affiliated with Compass. Equal Housing Opportunity.