Builders offering 5% discount on new homes

Rates are back down in light of last week’s inflation data which fell below expectations. The 30-year fixed rate mortgage fell 6 basis points to 5.29% while the 15-year mortgage fell a more significant 19 basis points to 4.60%.

current outlook:

While mortgage rates are still expressing some volatility, they are flatter overall. Most lenders have repriced the same scenarios at no more than an eighth of a percent or 0.125% between now and last week. Where we’re actually seeing a lot of turbulence is in the housing market, which might be in its own recession. 1 out of 5 builders stated that they lowered prices an average of 5% last month as a result of increased cancellations and waning sales. Buyer traffic in August also dropped to its lowest levels since 2014*. These concerns plus rising construction costs led to homebuilder confidence dropping for the eighth straight time and going negative or below 50 for the first time in eight years*.

*with the exception of spring 2020 when the pandemic first hit and lockdown orders were in place

Rates are back down in light of last week’s inflation data which fell below expectations

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