As the median payment on a new mortgage creeps toward $2,200, most buyers are desperate to save cash wherever they can.
They’re offering lower mortgage ratesIf slashed prices aren’t enough to get a mortgage payment in your budget, builders have another offer: A lower mortgage rate.
(Essentially, the builder prepays the lender the interest for the years the mortgage rate is reduced).
NAHB’s data shows that 29% of builders offered mortgage rate buydowns in October.
“Many builders are using sales incentives—including mortgage rate buydowns—as a method of addressing housing affordability headwinds,” says Robert Dietz, chief economist at NAHB.
Persons:
Aly J, ”, Nick Bailey, Max, Robert Dietz, buydowns —, Lennar, what’s, Angel Conlin, Pat Howard
Organizations:
Yale, Builders, National Association of Home Builders, “, NAHB, Kin Insurance
Locations:
Denver, Chicago, “, Policygenius