New research shows that homebuyers of newly constructed homes save roughly half a percentage point on mortgage rates compared to those purchasing existing homes. On average, newly built homes had a mortgage rate of 6.1%, significantly lower than the 6.6% for previously owned homes. This translates to approximately $105 monthly savings on a $400,000 home. Builders are often using mortgage rate buy-downs to entice buyers, covering the costs as an incentive, thus making new homes financially more appealing, especially in today's fluctuating market.
Homebuyers purchasing new builds save about half a percentage point on mortgage rates, thanks to builders' incentives, translating to substantial monthly savings.
Last year, new construction home buyers had an average mortgage rate of 6.1%, compared to 6.6% for previously owned homes, highlighting significant cost advantages.
The data indicates that builders may be offering more substantial mortgage buy-downs than previously reported, providing buyers with meaningful interest rate savings.
In-house financing options from builders and their partnerships with lenders enhance their ability to offer competitive mortgage incentives to attract buyers.
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