Menu
As we approach year-end, Austin’s real estate market is closely tied to shifts in the mortgage landscape. To gain insight into what’s ahead, we spoke with Atif Ahmad, founder of Adelo Mortgage—a boutique Austin firm with nearly 2 decades of experience. Atif is known for his personalized approach, focusing on long-term wealth building through customized mortgage solutions. His deep market knowledge and client-first focus make him a trusted partner for homebuyers and agents alike.
In our conversation, Atif shares insights on interest rate trends, his forecast for the coming months, and what buyers and sellers should keep in mind as we wrap up the year.
Having the right mortgage guidance makes all the difference. That’s why we’re proud to recommend Atif and his team at Adelo Mortgage to our clients. With over 18 years of experience, Adelo Mortgage has built its reputation on delivering exceptional service, personalized solutions, and a seamless process for buyers. From weekend pre-approvals to responsive support, they make navigating Austin’s competitive market easier and more seamless.
As the market evolves, having a lender who prioritizes your goals and wealth is invaluable. Atif’s expertise and Adelo’s hands-on approach offer the clarity and support clients need to take confident steps in today’s real estate market.
Conforming loan rates currently range from approximately 6.500% with points, to around 7.000% with no points, for loans at or below $766,000. Just 45 days ago, these rates were in the 5.750% to 6.125% range, marking an increase of ¾ of a percent. This shift was caused by the markets unwinding the probability for deeper rate cuts from the Fed in the last two meetings of the year.
Jumbo loan rates are now in the high 6’s to low 7’s. These two have increased over the last month.
We are stabilizing here through the election and the Fed’s November meeting. The jobs data moving forward will be a key measure looking forward in the short run.
Atif advises that the fluctuating interest rates are creating a challenging environment for buyers. Higher rates not only affect affordability but also reduce purchasing power significantly—by about $10,000 to $12,000 for every 0.25% increase. This lack of stability in the market rates puts buyers on the sidelines for reasons beyond just affordability. This
recent uptick also further keeps all the buyers with low locked in rates from upgrading in this market.
Atif anticipates that rates will remain relatively stable in the near term, with the latest jobs report from November 1 now providing valuable insights. The market’s response to this report, along with two additional Federal Reserve meetings before year-end, will likely shape interest rate trends. Additionally, shifting dynamics following the presidential election on November 5 may indirectly influence rate movements. Lastly, the other key metric will be the health of the jobs market.
Atif notes that while closed transactions remain slow, there has been a noticeable increase in inquiries as buyers feel more confident with lower rates ahead. Buyers are sensing a potential window of opportunity and are moving to explore their options. The high-end market, particularly for properties above $10 million, has seen increased cash transactions, indicating renewed interest among luxury buyers as well.
Atif remains optimistic about Austin’s real estate market over the next year. Investors are increasingly interested in properties priced at pre-pandemic valuations, betting on future growth. However, inventory challenges persist, with some properties lingering on the market. Atif anticipates gradual improvement over the next 6 to 12 months, with buyer activity typically picking up in the turn of the year. If rates slide back down before the end of the year, we may see a more brisk December.
Now May Be the Time to Act: With interest rates holding a little higher and inventory also elevated; this may be a great time to take advantage of a slower market and get a fair to great deal on a home. As rates come back down, demand will pick back up and we will be back to a normal market where the deals will evaporate. We are confident that the Fed will continue to lower Fed Funds Rate in 2025, and mortgage rates should follow. The timing and pace will be data dependent, but we will get there.
At The Giles Group, we believe that having the right team in your corner can make all the difference. If you want to better understand what steps you should be taking right now to take advantage of current interest rates, let’s talk—we’re here to guide you every step of the way.
I agree to be contacted by The Giles Group via call, email, and text. To opt out, you can reply ‘stop’ at any time or click the unsubscribe link in the emails. Message and data rates may apply. Message frequency varies. Privacy Policy & Terms of Service.
Don't have an account? Create your account, it takes less than a minute.
Lost your password?
It takes less than a minute. If you already have an account login.
Enter your email address and we'll send you a link you can use to pick a new password.
