Summary
Americans might be able to save money on mortgages by purchasing new homes because prices for new builds are similar to existing homes. Builders are offering incentives like lower mortgage rates to make new homes more appealing. This shift could change how people buy homes in the future.
Key Facts
- New home prices are now closer to existing home prices than before.
- Builders are offering incentives, reducing mortgage rates by nearly one percentage point.
- The average mortgage rate for new homes is 5.27%, whereas for existing homes it's 6.26%.
- Down payments required for new homes are lower, averaging 15.7% compared to 17.8% for existing homes.
- The median listing price for new homes in the third quarter was $451,337, slightly up from last year.
- Existing-home prices are also increasing, with a median price of $409,667.
- Builders are adapting to market conditions and offering deals to make new homes more affordable.
- Some economists warn that lower down payments mean buyers could risk losing money if home values drop.
