Interest rates for home mortgages have started their climb back up. Today in the Austin area a new mortgage will be over 5% - probably closer to 5.25%. That is still historically low but compared to the 4.5% we have been looking at for a long time it feels high. So cheap money is fading away and with it purchasing power.

$100k loan:

• 4.5% interest - $506.00 monthly payment of principal and interest
• 5.25% interest - $552.00 monthly payment of principal and interest

So if $506 is your budget, now all you can borrow is: $91,750. Your purchasing power went down by $8,250.

Here's another interesting note: in Austin the number of homes sold is going up and the average price is also going up. Austin is looking good!

John Blackburn

Construction is well underway at Brentwood56. Below are photos of our first four units. We'll update these as we move ahead, so check back soon!

Great news! More to follow.