Mortgage Rate Check
Whether you're buying, refinancing, or just watching — see what today's rates actually mean for your situation.
Rates update weekly. Individual rates vary by credit, down payment, and lender. This is planning context, not a quote.
Where rates stand right now
Loading current rate data...
Freddie Mac PMMS · conventional conforming, 20% down, excellent credit.
Higher monthly payment but significantly less total interest over the life of the loan.
Fed held steady. Many economists expect no cuts through end of 2026.
Persistent inflation + the Fed's "higher for longer" stance
The Federal Reserve held the federal funds rate at 3.50–3.75% in March 2026. With inflation proving stickier than expected, many economists now believe there will be no rate cuts in 2026. Mortgage rates don't directly follow the Fed funds rate — they track the 10-year Treasury yield — but the "higher for longer" outlook is keeping upward pressure on borrowing costs across the board.
Every 1% change moves monthly payment by ~$60–70 per $100K borrowed
On a $400K loan, a 1% rate difference changes your monthly P&I by roughly $240–280/month — real money over time, but rarely the sole determining factor in whether a purchase makes sense.
Austin-specific: add property taxes (2.1–2.4% annually) and insurance (~0.6%) to get your real monthly cost. On a $450K home, taxes + insurance alone add roughly $1,000–1,050/month.
When rate moves actually matter — and when they don't
Most rate headlines are designed to produce anxiety, not action. The real question is whether the math shifted enough to be worth a check for your specific situation.
Small rate moves change affordability more than headlines suggest
A 0.25% rate difference on a $400K loan is about $67/month — real, but not the number that should determine whether you buy. The bigger question is whether the payment at today's rate fits your budget. If yes, you can refinance later if rates drop meaningfully. If rates go higher instead, you'll have locked in at a lower level.
In Austin specifically: waiting for rates to drop while renting means you're also waiting through rent increases and potential price appreciation. Run both scenarios with actual numbers, not just the rate headline.
A refi only makes sense if the break-even works
The math: divide your closing costs by your monthly savings. If you'd break even in 24 months and plan to stay 5 years, it's worth doing. If you're resetting to a new 30-year term just to lower the payment, model the total interest cost — it often exceeds the apparent savings.
The threshold people use varies — some say 0.75%, others say 1%. The right threshold is your break-even, which depends on your balance, your closing costs, and how long you'll stay.
The best outcome is often just confidence
If the math says "nothing to do" — that's a useful answer. You don't need to act on every rate move. Knowing your break-even, your current rate, and what would have to happen for a refi to pencil out means you can ignore the noise until that threshold is actually hit.
Pick the check that fits where you are
Three different situations, three different things to look at. Click the one that fits.
Quick refi math — enter your current rate and balance and see if there's anything worth looking at.
30-year term assumed. Closing costs typically run 2–3% of loan amount. Confirm with your lender. Not financial advice.
See what today's rates look like against your target price — including Austin property taxes.
Austin assumptions: 2.2% annual property tax, 0.6% insurance. P&I + taxes + insurance shown. HOA, PMI, and maintenance not included. Actual costs vary.
Rates affect who can buy your home. Here's what the current rate environment means if you're thinking about listing.
Higher rates shrink the buyer pool — but don't eliminate it
At 6.46%, a buyer purchasing at $450K with 10% down pays about $2,700–2,800/month all-in (P&I + taxes + insurance). That's a real constraint for many buyers. But Austin's 71% buyer advantage index reflects more inventory and less competition — not a market that's frozen.
The practical impact for sellers: pricing right matters more than it did in 2021. Overpriced homes sit. Fairly priced homes in move-in condition still move in 2–3 weeks.
Want the clean answer without the back-and-forth?
Share a few basics and we'll point you to the right next step. If the math says nothing to do, we'll tell you that too.
By submitting, you agree to receive communications from Realty Haus about your inquiry. Reply STOP to opt out.
Got it — we'll get you a clean answer.
If this rate environment is relevant to your situation, we'll connect you with David Medrano at First United for exact numbers. If it's not, we'll tell you that too — no pressure either way.
Common questions — current answers
On a 30-year fixed mortgage, a 1% rate difference changes your principal + interest payment by roughly $60–70 per $100K borrowed. On a $400K loan, that's $240–280/month — real money, but not always the determining factor in whether a purchase makes sense.
The bigger impact is often total interest paid over the life of the loan. At 6.46% on a $400K 30-year mortgage, you'll pay roughly $325K in interest. At 5.46%, about $274K. The gap is significant over 30 years but smaller if you sell or refi in 5–7 years.
The calculation: divide your closing costs by your monthly savings to get your break-even in months. If you'll stay in the home longer than that, refinancing may make sense.
Closing costs on a refi typically run 2–3% of the loan amount — roughly $6,000–9,000 on a $300K balance. If your monthly savings are $150/month, you break even in 40–60 months. If you're planning to move in 3 years, the math doesn't work.
Also consider whether you're resetting to a new 30-year term. Lower monthly payment + longer term can cost more total interest than your existing mortgage — model both scenarios.
Nobody can reliably predict where rates go. The more useful question: does the payment work at today's rate? If yes, you can always refinance later if rates drop meaningfully. If rates rise instead, you'll have locked in at a lower level.
The risk of waiting: if rates drop to 5.7–5.9% (Fannie Mae's optimistic 2026 forecast), more buyers will re-enter the market, increasing competition and likely prices. You may save on rate but pay more on price — or lose deals you would have won in today's lower-competition environment.
In Austin specifically: the current 71% buyer advantage means less competition. That window is tied to conditions that won't last indefinitely.
Rate is the interest charged on your loan balance. APR (Annual Percentage Rate) includes the rate plus lender fees, discount points, and certain closing costs — expressed as a yearly figure.
APR gives you a more accurate comparison between loans. A lender offering a lower rate with high fees might have a higher APR than one offering a slightly higher rate with minimal fees. Always compare APR, not just rate, when shopping multiple lenders.
The main factors: credit score, down payment percentage, loan-to-value ratio, loan amount, property type, loan type (conventional vs. FHA vs. VA vs. jumbo), and debt-to-income ratio.
The Freddie Mac PMMS rate (6.46%) assumes excellent credit (740+), 20% down, primary residence, conforming loan. Real-world rates diverge from that based on your profile. Two people buying the same home on the same day can qualify for rates that differ by 0.5% or more. Shopping 3–5 lenders on the same day is consistently one of the highest-ROI steps a buyer can take.
A permanent buydown means paying points upfront to lower your rate for the life of the loan. One point = 1% of the loan amount, typically reduces rate by ~0.25%. On a $400K loan, one point costs $4,000 and saves roughly $60/month — break-even is about 5.5 years.
A temporary buydown (2-1 buydown) reduces your rate by 2% in year 1 and 1% in year 2, then resets to the full rate. Often seller-funded. Useful if you expect income to grow. The risk: you need to actually be able to afford the full rate when it resets in year 3.
Either way: if the deal only works because of the buydown, reconsider the deal. Buydowns are useful tools for deals that already make sense — not a way to make an overpriced or unaffordable home work.
Austin area property taxes range from roughly 2.1% to 2.4% of assessed value annually, depending on your city, county, school district, and any MUDs. On a $450,000 home, that's $9,450–$10,800/year, or $788–$900/month added to your payment if you escrow.
This is significantly higher than the national average and is the main reason Austin's all-in monthly costs often surprise buyers who only look at the P&I payment. Always model taxes + insurance + maintenance alongside your mortgage payment.
Good news: the homestead exemption reduces school taxes by $100,000 on your primary residence — saving most Austin homeowners $1,500–2,500/year. File once with your county appraisal district after closing. You can also protest your assessed value annually.
The conforming loan limit for 2026 is $806,500 for most of the Austin area. Loans above this threshold are "jumbo" loans, which carry different (often higher) rates and stricter qualification requirements.
If you're buying at the higher end of Austin's market and financing above $806,500, confirm with your lender that the rate they're quoting is for a jumbo product — the advertised PMMS rate applies to conforming loans only. Jumbo rates can run 0.25–0.50% higher or lower depending on the lender.
Data: Freddie Mac PMMS April 2, 2026. Fed funds rate: March 2026 FOMC meeting. Fannie Mae / MBA forecasts as of March 2026. Austin property tax estimates based on Travis/Williamson/Hays county rates. Not financial advice.
If the math says nothing to do, that's a useful answer too.
You'll still be smarter than the headlines. But if you want a second brain on the decision, send your scenario.