AUSTIN, Texas — According to the September and 2026-Q3 Central Texas Housing Report released by Unlock MLS, rising mortgage rates weighed on the Austin-Round Rock-San Marcos MSA housing market in September, slowing sales activity as higher monthly payments created additional affordability challenges for buyers. Closed sales declined 14.8% year over year to 2,223 sales, while the median sales price increased 1.4% to $421,000. Pending sales declined just 1.8% to 2,313, suggesting some buyers remained engaged despite higher borrowing costs.
Homes also closed at an average of 92.7% of their original list price, compared to 91.4% a year earlier, reflecting closer alignment between buyers and sellers in closed transactions. While September's sharper decline highlights the immediate pressure of rising rates, third-quarter figures provide a broader view of market activity, with closed sales declining 2.4% year over year to 7,748 and the median sales price decreasing 2.3% to $420,000.
Vaike O’Grady, research advisor at Unlock MLS, said September’s slowdown reflects a shift in market activity following the recent increase in mortgage rates.
“September's decline in closed sales is significant, and it shows just how sensitive today's housing market is to changes in mortgage rates. We had been seeing steady activity, but the recent increase in rates created another hurdle for buyers, especially those trying to enter the market for the first time. The biggest factor for many buyers isn't necessarily the price of the home, but what that price means for their monthly payment at today's rates. While affordability remains a real challenge, we're still seeing activity in the market. The question now is how buyers and sellers respond to these conditions in the months ahead.”
John Crowe, 2026 Unlock MLS and ABoR president, emphasized the importance of understanding local market conditions and working with a real estate professional when making buying or selling decisions.
“It's easy to look at a headline about declining sales or rising mortgage rates and feel discouraged, but every buyer and seller is in a different position. What's happening across the broader market may look very different depending on the neighborhood, price point or type of home you're considering. That's where working with a knowledgeable real estate agent can make a real difference. They can help you identify opportunities that fit your needs and make informed decisions based on your goals rather than trying to predict what the market will do next.”
Austin-Round Rock-San Marcos MSA
