What Does the Fed’s Rate Cut Mean for Central Texas Homebuyers?

By Julie Gualandri

Julie arrived in Austin in 2008 and soon discovered a city that blended opportunity, vibrancy, and a sense of home. By 2010, she had found her true calling in real estate—a profession that allows her to pair market expertise with a deep commitment to service.

Think mortgage rates will drop now that the Fed slashed rates? That’s where you might be wrong, and waiting for mortgage rates to drop before buying may even cost you more. The truth is, Fed rate cuts don’t mean mortgage rates will drop right away. Let me explain why.

What the Fed does. The Federal Reserve controls short-term rates, which are the rates at which banks lend to each other. Mortgage rates, however, are influenced by a variety of factors, such as the 10-year Treasury bond, inflation, and the overall economy. While the Fed’s action often signals future changes, lenders typically adjust their rates in anticipation, meaning a rate cut doesn’t always lead to a drop in mortgage rates right away.

How it affects buyers. In our local market, there are more homes available than we’ve seen in a while, which is great news for buyers. In Travis, Williamson, and Hayes counties, listings are staying active longer, and buyers aren’t facing the same level of competition we saw during the pandemic. This gives you more time to make decisions, more options to choose from, and often more negotiating power.

Why waiting to buy isn’t worth it. Waiting for the perfect mortgage rate could cause you to miss the perfect home. Always remember that the best time to buy is when you’re financially ready and have found a property that fits your needs. Mortgage rates can fluctuate, but the right home might not always be available. Plus, you can always refinance later if rates drop.

Thinking about buying, but don’t know where to start? You don’t have to figure everything out on your own. I work with trusted local lenders who can sit down with you, run the numbers, and show you exactly what you qualify for today. They’ll help break down payments, loan options, and guide you to feel confident in your decision.

If you’d like to see homes that match your price range, style, and favorite areas, or if you’d like me to connect you with a lender, reach out by calling me at 512-568-1222 or emailing me at julie@julieghomes.com. I’ll help you find the right property and the best strategy to succeed in today’s market.