AUSTIN, Texas — After years of being at all-time highs, mortgage rates have dropped to their lowest in more than a year in anticipation of an interest rate cut by the Federal Reserve next month.
This relief comes at a time when a majority of Texans believe there’s a housing affordability crisis.
When it comes to the current real estate market, houses don’t stay listed for very long. Austin real estate agents Jordan and Melanie Suber are so busy, that sometimes their newborn baby even tags along.
“I did take the first seven-and-a-half weeks off, so you’re just seeing me jump back in.” Mrs. Suber said.
But for prospective buyers like Amanda Acosta, it’s a much different situation.
“Gotta have patience,” Acosta said. “You gotta keep looking. You gotta keep researching.”
She lives in Jarrell and wants to buy a rental home in Georgetown. She’s one of the nine in ten Texans who believe housing costs too much, according to a new study by the University of Houston and Texas Southern University.
“I don’t have an endless supply of money, so I can’t afford to just throw money at the bank because the interest rates are high,” Acosta said.
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But now, the average rate for a 30-year mortgage has dropped to 6.47%, the lowest rate seen since May 2023.
Acosta says this changes things.
“It’s really exciting, because it’s like showing me, okay, my patience, it’s fixing to pay off,” Acosta said.
With the Federal Reserve expected to slash interest rates next month and a ballooning unemployment rate, the Subers say rates could even fall lower. It’s also an election year.
But there’s no way to tell for sure.
“Nobody has a crystal ball, and really it’s impossible to time the market perfectly.” Mrs. Suber said.
That’s why they say now could be the best time to buy, but only if you’re ready.
“At the end of the day, you’ve gotta do what’s best for you and your family,” Mr. Suber said. “If it’s going to be a huge stretch, don’t move forward. You can wait. Maybe it’ll drop, maybe it won’t. But that peace of mind is the most important part of real estate.”
The Subers add if you bought a home in the last 15 months, refinancing could be an option to try and secure a better rate.
