More than 75% of all new home builders are using interest rate buydowns as a way to attract buyers to their communities.This is according to new research by John Burns Real Estate Consulting. Builders are fronting several thousand dollars on behalf of their buyers so these buyers can have a lower rate for the first few years of the loan, or in some cases the whole life of the 30 year loan. New home builders with completed homes or ‘standing inventory’ are especially motivated as this type of inventory is costly for the builder to carry. This kind of product offers a terrific opportunity for buyers looking to move soon and who desire a lower interest rate.
December 16, 2022
by Natalie Parsons