10/12/2026
Mortgage Rates Aren’t Backing Down Yet
As we move through the year, mortgage rates continue to hold steady near 7%, keeping home affordability a challenge for many here in Austin and beyond. Unless inflation cools enough to influence the Federal Reserve’s approach, we can expect rates to remain at these levels. Sticky inflation and the possibility of another Fed hike could even nudge borrowing costs higher, with wider mortgage-backed securities (MBS) spreads adding further pressure. For a meaningful drop in rates, we would need to see sustained progress on inflation, lower long-term yields, more supportive signals from the Fed, and healthier MBS spreads. Whether you’re buying, investing, or considering a refinance, it’s wise to plan around today’s rates and treat any future rate relief as a welcome bonus. Having guided clients through many market cycles since 2005, I know each situation is unique—navigating these shifts thoughtfully can make all the difference.
