Sarah Maddali of Serendipity Realty Group at Compass says Austin buyers can lean on state programs and a slower local market while the Federal Reserve meets this week.

AUSTIN, Texas (Oct. 27, 2026) - First-time home buyer programs in Texas deserve a fresh look this week, says Sarah Maddali, REALTOR® and team leader of Serendipity Realty Group at Compass, as the Federal Reserve opens its two-day policy meeting and first-time buyers claim a bigger share of the market. The National Association of REALTORS® reported Oct. 13 that first-time buyers made up 31% of existing-home sales in September, up from 30% in August and 30% a year earlier.

In the Austin area, those buyers are walking into a slower market. Unlock MLS's September 2026 Central Texas Housing Report showed 2,223 closed sales in the Austin-Round Rock-San Marcos metro, down 14.8% from a year earlier, with a median price of $421,000 and 5.4 months of inventory. Homes across the metro closed at an average of 92.7% of list price. Inside the city of Austin, the median was $570,958, also with 5.4 months of inventory.

Rates are the other half of the picture. Freddie Mac's Oct. 22 survey put the average 30-year fixed rate at 7.32%, down from 7.40% a week earlier and up from 6.19% a year ago. The Fed raised its target range to 3.75% to 4.00% in September and announces its next decision Wednesday, Oct. 28. Heading into the meeting, CME FedWatch pricing showed about a 10% chance of a hike this week, Quartz reported Oct. 27.

Texas has state programs built for this buyer. The Texas Department of Housing and Community Affairs (TDHCA) offers My First Texas Home, which pairs down payment assistance with a 30-year mortgage for first-time buyers, with exceptions for qualified veterans and targeted areas. Its My Choice Texas Home program doesn't require buyers to be first-timers, and the Texas Mortgage Credit Certificate gives eligible first-time buyers and veterans a dollar-for-dollar reduction in federal tax liability. TDHCA requires an approved homebuyer education course to qualify for its assistance.

"Nobody should pick a house based on what the Fed does Wednesday," said Maddali. "What I'd actually do this week is call a lender who works with the TDHCA programs, find out if you qualify, and knock out the homebuyer class now. Or there are local lenders that have their own in-house first-time homebuyer programs that can potentially help even more. Then when the right house shows up, you're ready, and with 5.4 months of inventory you've got room to negotiate."

What Austin first-time buyers can do this month:
- Ask your lender whether you qualify for My First Texas Home, My Choice Texas Home or a Mortgage Credit Certificate, and what each one requires.
- Take an approved homebuyer education course early. TDHCA requires one for its assistance programs.
- Use the slower market. Ask for seller-paid closing costs or repairs, especially on homes that have been listed for a while.

Free guides on first-time home buyer programs in Texas and the Austin buying process are available at 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.

Media contact
Sarah Maddali
Serendipity Realty Group at Compass
2500 Bee Caves Rd, Bldg 3, Ste 200, Austin, TX 78746
563.650.0452
[email protected]
sarahmaddali.com