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Pay attention to How Ultra Luxury is Transforming Clarksville 💰️ + Why Mortgage Rates are Going Up📈 

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(*unbiased opinion)

WHAT'S INSIDE

• 🤠 WHAT’S HAPPENING AROUND TOWN

• 🔢 THE DATA

• ⁉️ WHAT THIS MEANS FOR YOU

• 🤤 HOUSE WORTH DROOLING OVER

🤠 WHAT’S HAPPENING AROUND TOWN

If you’re looking to buy or invest - welcome to your unfair advantage. Know what’s happening before everyone else.

Clarksville is changing and the price points are going up 📈

Welcome to Sixth&Blanco

Ultra Luxury in Austin isn’t slowing down.
You might have heard of this development already (plans were announced in 2023) but renderings come and go. The true test is the funding. Just last week the MML group secured a $193 million construction loan and has been given the green light.

Construction started last week on the 1.6 acre project and the first units will be live Q2 2027.

You probably already know the MML group.
This hospitality company has a massive Austin presence - some of their portfolio includes:

• Swedish Hill Bakery

• Clarks Oyster Bar

• Ski Shores Cafe

• Pecan Square Cafe

• Jeffrey’s

• Josephine House

So what are they building with $200M?
Sixth&Blanco will be home to 10, $10,000,000 penthouses… (yes, you read that right. $10M each)

And 5 of them have already been reserved, with $500,000 deposits.

There’ll also be 57-key hotel and over 500,000 sqft of retail and restaurant space. Swedish Hill and ByGeorge have already signed up.

🔎 Psst: Looking for investment properties? Get in early and capitalize. When projects complete, values will skyrocket 🚀

🔢 THE DATA

If you thought we were done with the Fed after the rate cut - we’re not (sorry!!)

The Fed cut rates - then mortgages went up?

If you saw something like this you might be confused.

Let’s break it down:

• Rate pricing in complicated (obviously)

• After the Fed announced rate cuts, mortgage rates did drop but bounced back up

• Freddie Mac’s mortgage rate measurement shows a current 6.12% rate, up from 6.09% immediately after the 9/18 Fed announcement

But whyyy?

• Long term loans (like your 30-year mortgage) are packaged into bonds and backed by the government.

  • In English please: long term loans act according to what might happen with the Fed over years vs. in the next few months

    • Volatility in any direction actually causes rates to go up

    • Mortgage rates decreased before the rate cut because the market was already anticipating the 9/18 cut and a few more this year

• Here’s what the experts say:

  “The key is not necessarily whether the Fed cuts short-term rates by 25 or 50 basis points but how that reduction is interpreted further out”
  - Mark Palim, Chief Economist @ Fannie Mae

TLDR:

• Mortgage rates are affect by rate cuts and by long-term market predictions

• This rate increase happened because the market was already cutting interest rates in anticipation of the Fed announcement

• Pandemic era rates are not the norm. In the past 100 years - the average 30-year mortgage rate is above 5%

⁉️ WHAT THIS MEANS FOR YOU

If you’re a buyer/seller/investor/renter or just interested in real estate - this weekly newsletter will help guide your decision making and help you better understand the market.

🤤 HOUSE WORTH DROOLING OVER

Clarksville will be the new South Congress in a few years.

Here’s your opportunity to get in before the spike - one block from Jeffery’s and Josephine House.

Yours for $3,450,000

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