Hi y’all, welcome back to Selling Austin - your weekly local real estate recap.

Inside: The Future of the Fed 💰️ + Development Back on Track 🏗️ 
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WHAT'S INSIDE

• 🔢 THE DATA

• 🤠 WHAT’S HAPPENING AROUND TOWN

• 🤤 HOUSE WORTH DROOLING OVER

🔢 THE DATA

I’m an ex-dentist turned Realtor - let’s work together! Email me, tweet me or send me a carrier pigeon. 🐦️ 

President Trump said he will soon name a new Federal Reserve chair who strongly believes in lowering interest rates, signaling continued pressure on the central bank to ease borrowing costs.

At a glance 👀 

• Trump says the next Fed chair will favor rates that are “lower by a lot”

• Current Federal Reserve rate range: 3.5% to 3.75%

• Trump has floated rates as low as 1%, a level not supported by any current finalists

  • Finalists:

    • Kevin Hassett, White House economic adviser

    • Kevin Warsh, former Fed governor

    • Chris Waller, current Fed governor

• Mortgage rates: stuck around 6.3% to 6.4% since Labor Day

Trump argues that a more aggressive rate-cutting Fed would push mortgage payments lower, but the connection is not that direct. Mortgage rates are driven more by long-term bond yields, especially the 10-year Treasury, which respond to inflation expectations and economic growth rather than short-term Fed policy.

Trump has also said he believes the next Fed chair should consult with the White House on interest rate decisions. This is a complete departure from status-quo and Fed independence. While all finalists support lower rates than today, none have endorsed the deep cuts Trump has publicly called for.

The takeaway for housing: political pressure may increase, but meaningful relief in mortgage rates is far from guaranteed and likely depends more on inflation and economic conditions than on who occupies the Fed chair.

🤠 WHAT’S HAPPENING AROUND TOWN

Texas development is still happening, but it looks very different. Here’s an example:

A long-stalled East Austin mixed-use project is moving forward again after recalibrating to today’s tougher economics. LV Collective plans to break ground in June on a 476-unit development at 2700 East Fifth Street, according to a state filing.

At a glance 👀 

• Project name: The Right Angle

• Location: East Fifth Street at Pleasant Valley Road

• Site size: 4.3 acres

• Units: 476

• Estimated cost: $106 million

• Construction start: June

• Target completion: September 2028

The new plan is a scaled-down version of an earlier proposal. LV Collective originally envisioned a 625-unit mixed-use project with townhomes, duplexes, co-working space, grocery and retail, and a price tag ~$134 million, with completion targeted for 2024.

The revised project keeps its mixed-use focus but trims both unit count and cost. This reboot highlights a major shift. After years of aggressive multifamily construction that pushed rents and occupancy down, developers are reworking projects and leaning into mixed-use components that better match current demand.

🤤 HOUSE WORTH DROOLING OVER

Taking a different approach today - this house is nice - but is it almost $6M nice? Only 4 bedrooms in 5000 sqft.
The Rollingwood neighborhood significantly pushes the price point up. You know it: location, location location.

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