Builders Are Offering Lower Mortgage Rates
Here’s something most people don’t know. Right now, buyers of brand-new homes often get better mortgage rates than buyers of existing homes. That’s because many builders are also offering rate incentives to make their homes more attractive and keep sales moving. Data from Realtor.com shows, in 2023 and 2024, buyers of newly built homes got a mortgage rate around half a percent lower compared to those who bought existing homes ( see graph below ):
Buying a Newly Built Home Could Come with a Lower Mortgage Rate Average 30-Year Mortgage Rates by Home Type
7.0%
Existing Homes
Newly Built Homes
6.5%
6.0%
5.5%
5.0%
4.5%
4.0%
3.5%
3.0%
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Source: Realtor.com
That kind of savings adds up and makes a big difference when you’re figuring out your monthly budget. So, if you haven’t found something you love yet, it’s time to add newly built homes to your search. You may find that what you’ve been looking for is already out there, it’s just in a new home community.
Bottom Line More choices, the potential to negotiate on the price, and maybe even better mortgage rates make these options a bright spot in today’s housing market. If you haven’t considered a newly built home yet, what’s holding you back?
9
Made with FlippingBook. PDF to flipbook with ease