AUSTIN (KXAN) — The Federal Reserve announced a cut to interest rates on Wednesday, prompting questions about what it could mean for the Austin-Round Rock metro’s housing market.
On Thursday, 2025 Austin Board of Realtors (ABOR) President Brandy Wuensch talked with KXAN Anchors Avery Travis and Will DuPree about what home buyers and sellers can expect in the market.
“It’s a positive reaction within our market. You know, the federal rate decrease isn’t just an economic adjustment, it is actually a psychological lift for buyers in a positive way,” she said.
The rate cut may not make directly impact mortgage rates, but Wuensch said that it will help with affordability.
“When interest rates start to be reduced, it allows buyers, typically, to be able to afford more home for the same monthly payment,” she said. “And so we’re going to see a lot of buyers have a lot more access to opportunities they didn’t have before, and maybe just inventory, be able to see homes that might have been out of the price range.”
Currently, the metro’s median home price is $444,490, according to data from ABOR. Active home listings and months of inventory are up from August 2024, which helps to push down asking prices due to increased competition. The amount of sales closing has also increased steadily over the last four months.
“That is showing that that prices are stabilizing. And the stability means that both sellers and buyers have opportunities to make the right decisions, kind of circling back to that consumer confidence,” Wuensch said. “When they’re confident, they start to make moves and buy in this market.”
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