If you’ve been watching the housing market and waiting for the “right time” to buy new construction, the latest market data suggests that moment may be right now. According to a November report from housing research firm Zonda, new-home prices are starting to soften, and buyers are beginning to gain leverage. Builders are responding to slower demand with price adjustments and financing incentives, creating an environment where informed buyers can step in and benefit. Here are four key trends to consider if you're thinking about buying before the end of the year: 1. Price Drops and Mortgage Rate Buydowns Are Back Zonda reports that 40% of builders lowered their home prices in November, with 60% offering mortgage rate buydowns—some as low as the 4% range. In short, buyers may be able to secure both a better purchase price and a more favorable interest rate. Many of these deals are tied to quick move-in inventory —homes that are completed or nearly completed and available withi...
What the Fed’s Rate Cut Really Means for Buyers and Sellers Yesterday, the Federal Reserve announced a quarter-point rate cut (25 basis points). Headlines like this tend to grab attention, but they also create a lot of misconceptions about what it actually means for the housing market. Let’s clear up the confusion. Fed Rate Cuts vs. Mortgage Rates A common myth is that when the Fed cuts rates, mortgage rates immediately follow. In reality, the Fed’s decisions mainly affect short-term debt, like credit cards, auto loans, and business lending. Mortgage rates, however, move more in response to the bond market and broader economic data. That’s why mortgage rates actually dipped a couple of weeks ago — not because of the Fed, but because economic reports pointed to a slowdown. The market had already priced in the Fed’s move before it happened. What This Means for Buyers Rates may continue to ease as new economic data comes out. But here’s the catch: by the time these shifts make the e...