At the bottom of KB Home's current low-rate offer, the sample payment is $2,530 a month at 4.99%. That figure covers months 1 through 60. For months 61 through 360, the same sample loan shows $2,960 a month at 6.43%. That is a $430 jump in year six, and the builder printed it. The headline rate belongs to a 5/1 FHA adjustable-rate mortgage, so it is not a fixed rate.
If you are comparing Pflugerville with Round Rock, Hutto or Manor this fall, you will see numbers between 4.75% and 4.99% on sales-office banners and in builder emails. They look interchangeable. They are not. Each one is a separate loan product, offered through the builder's own lender, on a set group of homes, with a contract or closing deadline that runs out before New Year's. Those conditions are the real comparison. They also explain why the resale house a few streets over is priced the way it is.
Three loan products behind nearly the same number
This is what Pflugerville-area builders were advertising as of early October 2026, along with the terms each one prints.
| Builder and community | Headline offer | Type of rate | Required lender | Deadline |
|---|---|---|---|---|
| Empire Homes, Villas at Rowe | Rates from 4.75%, reduced prices, paid closing costs on select move-in-ready homes | Not specified in the disclaimer | Alta Home Lending | Contract Oct. 1 to Dec. 31, close by Dec. 31 |
| Ashton Woods, The Trails at Carmel and other Austin communities | 4.99% fixed, 5.425% APR, up to $6,500 in closing costs, up to $70,000 in discounts | Fixed | Lender conditions apply | Contract Oct. 6 to 31, 2026, close by Nov. 30, 2026 |
| KB Home, Pflugerville-area offer | 4.99%, 5.781% APR | 5/1 FHA ARM | KBHS Home Loans | Purchase agreement by Oct. 31, 2026, rate lock within 30 days |
| Pulte, Kuempel Estates | Up to $40,000 in flex cash, half-off homesite premiums | Cash incentive, not a rate | Not shown in the terms reviewed | "Through October 31st," no year printed |
| Lennar, Meadowlark Preserve | $20,000 tags on move-in-ready homes | Discount | Terms not located | Not located |
One more product type shows up a short drive east. M/I Homes' Carillon community in Manor is advertising temporary 2/1 buydowns through M/I Financial. The FHA version starts at 3.25%, moves to 4.25% in year two, then settles at 5.25%. The conventional version runs 3.875%, then 4.875%, then 5.875%. That offer runs September 22 through October 11, 2026.
So a buyer touring four sales offices in one Saturday could see a fixed rate, a five-year adjustable rate, a rate that steps up after two years, and a pile of flex cash. All four would be described as a "low rate" or a "savings event." The number on the banner tells you the first payment. The type of rate tells you every payment after that.
The lender is part of the price
Every rate offer in that table depends on financing through the builder's chosen lender. KB's terms put it plainly: buyers must finance with KBHS Home Loans, lock a rate within 30 days of signing, confirm owner occupancy and close with KBHS. "Buyer may use another lender but will be ineligible for this offer." Empire's Smart Move rate requires applying with and using Alta Home Lending, and the offer cannot be combined with other promotions. At Carillon, the buydown comes through M/I Financial, and buyers choose between the buydown and up to 3% toward eligible closing costs. They cannot take both.
This matters because the incentive and the loan are sold as a package. A buyer can't take the builder's subsidy to an outside lender to compare quotes. You can still collect outside quotes, but the comparison is the builder's lender plus the subsidy against an outside lender with no subsidy. That's a real choice. It's also a different choice from shopping one rate against another.
The "up to" figures work the same way. Ashton Woods says its maximum discount can come as a price reduction, closing costs, design options or other incentives, on select move-in-ready homes, with eligibility limits. KB's fine print says the seller contribution depends on the buyer's loan program, loan amount and credit profile. It also says the buyer pays any buydown cost beyond what the builder contributes, and that the total "cannot exceed lender guidelines." Two buyers looking at the same house can end up with different packages.
The calendar is part of the price, too
Look at the deadlines together. Ashton Woods needs contracts by October 31 and closings by November 30. KB needs a signed purchase agreement by October 31. Empire and M/I both want homes closed by December 31, 2026. Most of these offers apply to select or move-in-ready homes, not homes built to order.
That shapes your search. The best-subsidized homes in Pflugerville this fall are the ones already finished, on the floor plans and lots the builder chose to discount, with closings set inside a few weeks. If your timeline depends on selling a current home first, the year-end close dates can matter more than the rate. A buyer who needs until February is likely outside most of these windows. KB's sample rate is dated September 24, 2026, and KB says it can change or end the promotion at any time.
Why the resale house down the street is priced the way it is
A homeowner selling an existing Pflugerville house has no affiliated mortgage company and no quarterly sales event. That seller is competing for the same buyer, and the market data shows that competition is getting more crowded.
According to the Texas Real Estate Research Center's Pflugerville housing data, active listings rose from 275 in June 2026 to 292 in July and 311 in August. Over the same months, inventory went from 4.76 months to 4.87 and then 5.34. Pflugerville recorded 54 MLS sales in August 2026, down 28% from a year earlier, at a median price of $370,000. That data counts new and existing homes sold through the MLS together, and builder sales made outside the MLS are left out. So it describes the whole competitive pool, not resale homes alone.
Community Impact's October 6 report on Unlock MLS data describes the same split. In August, Hutto sold more homes than a year earlier, and Pflugerville moved the opposite way. Across the metro, Unlock MLS counted 2,501 closed sales in August 2026, down 7.3% year over year, with a median price of $412,000, down 6.4%. Inventory was 5.1 months, compared with 5.5 a year earlier. In the Austin American-Statesman's coverage, Unlock MLS research advisor Vaike O'Grady linked the slower buyer activity to higher interest rates.
When rates are the obstacle, a builder that can lower the rate has a lever a resale seller doesn't. The resale seller's levers are price and concessions, and concessions face the same limits that cap builder contributions. KB and M/I both note that seller contributions are bounded by lender or agency guidelines. No public dataset available right now separates how much of Pflugerville's resale pricing comes from builder competition. The mechanism is clear, though. For a payment-focused buyer, a resale home has to make up the gap through the price.
For buyers, that changes the question. A resale home with no rate subsidy may still be the better deal if its price reflects that competition, if you can choose your own lender, and if the closing date fits your plans. If you are selling in Pflugerville, the sellers page covers how pricing and launch timing work against new-construction inventory.
Putting the offers on the same footing
These questions turn each offer into something you can compare:
- What type of rate is it? Fixed, adjustable, or a temporary buydown that steps up. For an adjustable rate, find the payment after the initial period. KB prints one, and its caps are 1% at the first adjustment, 1% each year after that, and 5% over the life of the loan.
- What is the payment in year three and year six? A 2/1 buydown and a 5/1 ARM can both start low and then rise at different points.
- Which lender is required, and what happens if you use another one? At KB, the offer goes away.
- Which homes qualify? "Select move-in-ready" can mean a short list.
- What is the closing deadline, and does it match your sale or lease timeline?
- Can incentives be combined? At Carillon, the buydown and the closing-cost help are either/or. Empire's rate can't be stacked with other promotions.
- What would the same payment cost on a resale home? Run the resale price at an outside lender's rate in the mortgage calculator next to the builder's sample.
The CFPB publishes a consumer handbook on adjustable-rate mortgages, and KB links to it in its own fine print for more information about adjustable-rate loans.
A few common questions
Is a 2/1 buydown the same as a lower rate? No. Under M/I's Carillon terms, the rate is lower in the first two years and then reaches the note rate in year three: 5.25% on the FHA version and 5.875% on the conventional version.
Do these offers include taxes and insurance? Empire's terms say the incentive does not cover prepaid taxes, mortgage or property insurance, or mortgage payments. KB's sample payment leaves out taxes, insurance, HOA fees and assessments.
Will these exact offers still be around in November? Some won't. The Carillon offer ends October 11, and the KB and Ashton Woods offers end October 31. Builders say their terms can change without notice. For more on the area beyond the sales offices, see the Pflugerville neighborhood page and our summer look at openings east of SH 130.
If you have a few builder offers and a resale listing or two side by side and want the year-six payment, lender requirements and closing dates lined up in one place, Keri Jackson can go through the fine print with you before you sign anything. Let's Connect.
This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.
