Managing Editor, National Mortgage Professional
New-home sales rose 6.4% in August as builders cut prices, offered incentives, and sold more lower-priced homes. Now mortgage rates are moving against buyers again
KEY TAKEAWAYS
- Mortgage rates are back above 7%. Freddie Mac’s 30-year fixed averaged 7.03%, up 27 basis points in two weeks.
- Builders are finding ways to keep buyers moving. August new-home sales were estimated at a 684,000 annual pace, while builders leaned on lower prices, incentives, and smaller homes.
- New construction has a price advantage. The median new-home price was $393,700, $35,400 below the median existing-home price.
- At 7%+ rates, helping borrowers compare buydowns, concessions, and total financing costs can be critical to getting purchase loans closed.
Mortgage rates have officially broken back above 7%, just as builders were showing some success getting buyers across the finish line.
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