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Author: Seth Pfaehler

Why a Newly Built Home Might Be the Move Right Now

Are you looking for better home prices, or even a lower mortgage rate? You might find both in one place: a newly built home. While many buyers are overlooking new construction, it could be your best opportunity in today’s market. Here’s why.

There are more brand-new homes available right now than there were even just a few months ago. According to the most recent data from the Census and the National Association of Realtors (NAR), roughly 1 in 5 homes for sale right now is new construction. So, if you’re not looking at newly built homes, you’re missing out on a big portion of what’s available.

And with more new homes on the market, builders are motivated to sell their current inventory. As a result, many are taking steps to draw in buyers.

Builders Are Cutting Prices

According to Buddy Hughes, Chairman of the National Association of Home Builders (NAHB):

“Almost 40% of home builders reduced sales prices in the last month . . .”

That means builders are being realistic about today’s market and adjusting to what buyers can afford. It’s their way to keep their inventory moving.

So, builders may be more willing to negotiate price than you’d expect – and that means your dollar may go further if you buy a newly built home. Lean on your agent to see what’s available and what incentives builders are offering in and around your area.

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 buydowns to make their homes more attractive and keep sales moving. Basically, they’re willing to chip in to lower your rate, so you’re more likely to buy one of their homes.

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):

a graph of a graph showing a line graphThat 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?

Talk to a local real estate agent about what’s available and if a newly built home makes sense for you.

Mortgage Rates Are Stabilizing – How That Helps Today’s Buyers

Over the past few years, affordability has been the biggest challenge for homebuyers. Between rapidly rising home prices and higher mortgage rates, many have felt stuck between a rock and a hard place.

But, something pretty encouraging is happening. While affordability is still tight, mortgage rates have shown signs of stabilizing in recent months. And that may finally make it a bit easier to plan your move.

Mortgage Rates Have Stabilized – For Now

Over the past year, mortgage rates have had their share of ups and downs, making it tough for buyers to know what to expect. But recently, rates have started to level out and have settled into a more narrow range (see graph below):

a graph of a rateAs the graph shows, rates have stayed within that half-percentage-point since late last year. Yes, there’s been movement within that range, but wild swings and sudden ups and downs just haven’t been the story lately. And that’s a bigger deal than you may realize. As HousingWire explains:

“Analysts, economists and mortgage professionals are coining this quarter’s activity as one of the most “calm” periods for mortgage rates in recent memory.”

How This Helps Today’s Buyers

Let’s be real. Unpredictability makes it tough to plan ahead. When rates are bouncing around and making big jumps week to week, it’s easy to be intimidated. But with rates staying in a pretty steady range over the past several months, you have a clearer picture of what your potential monthly payment could look like. That makes moving feel less uncertain – and more doable.

So, stop waiting. And start planning. Even though rates may not be where you want them to be right now, they have been much less volatile for quite some time.

Will This Stability Last?

According to the experts, it looks like that stability might hang around for a bit. Rates may come down ever so slightly in the months ahead, but it’ll likely be a slow and mild change. As Danielle Hale, Chief Economist at Realtor.com, says:

“I expect a generally downward trend for rates this year, but at a slow enough pace that it might not be noticeable in any given month.”

So, if you’ve been holding out for the perfect mortgage rate, the best advice is to avoid trying to time the market. It may not look terribly different than the opportunity you already have in front of you. As Jeff Ostrowski, Housing Market Analyst at Bankrate, explains:

“Trying to time mortgage rates is really difficult. There’s no guarantee that rates are going to be any more favorable in three months or six months.”

And if we look at the latest expert forecasts that go out a bit further, even those tell much of the same story. Two out of the three projections say rates will still likely be in the mid-6% range by the end of 2026 (see graph below):

a graph of a graph showing the rate of a mortgage rateThis puts today’s buyers in a much better spot. As Sam Khater, Chief Economist at Freddie Mac, explains:

“Mortgage rates have moved within a narrow range for the past few months . . . Rate stability, improving inventory and slower house price growth are an encouraging combination . . .”

Just remember, mortgage rates are still going to react to changing economic conditions, inflation, and more – and that means they could shift again. But right now, you’ve got more predictability, and that means more opportunity, too. 

Bottom Line

While affordability is still a challenge, the market may be offering a bit more stability – and that makes planning your next move a lot easier.

Connect with an agent or a lender if you want to run the numbers and see what a monthly payment would look like in today’s market. That way you can stop waiting and start planning.

The 5-Year Rule for Home Prices

a screenshot of a graph

Some Highlights

  • If recent home price headlines have you feeling worried, here’s some perspective.​​
  • Home values almost always go up in the long run. ​And the long-term gains offset any short-term dips. Basically, if you plan to live there for 5 or more years, you should be able to buffer yourself against any short-term declines.
  • Connect with an agent to have a conversation about what’s happening with prices in your market.

The Advice First-Time Homebuyers Need To Hear

Buying your first home is a big milestone – and the right support is going to make it a whole lot easier.

Because while this process might be brand new to you, it’s not new to your agent. They’ve helped plenty of first-time buyers through it. They know what works, what actually matters, and how you can move through the process with a lot less guesswork.

Here are a few real-world tips based on that experience of helping other first-time buyers.

Tip #1: Get Pre-Approved First

Rocket Mortgage says this is one of the most common mistakes first-time buyers make. And it’s easy to see why. Looking at homes online is fun. But doing it before you know your numbers? That’s risky. You don’t want to fall in love with a house that’s way outside of your financial comfort zone. That’s a fast track for getting frustrated.

Instead, find your agent and talk to a lender early – before looking at any houses. With your lender’s help, you’ll be able to get pre-approved for your home loan. That’ll give you a better idea of what you’ll be able to borrow. And it helps you set a realistic budget. Then, your agent will be able to make you a customized list of homes, so you’re only seeing what’ll work for what you can spend. More clarity, less frustration.

Tip #2: Set a Budget and Stick To It

Remember, just because you can borrow up to a certain amount, chances are you won’t want to max that number out. It’s really important to avoid overextending your budget, especially in today’s market. Other housing expenses like home insurance, homeowners association (HOA) fees, and taxes are on the rise, and you need to factor those in. Bankrate offers this advice:

“When you’re building a budget to narrow your search for properties, don’t just think about how much house you can afford, but how much in recurring costs you can handle once you’ve purchased your home.”

So, lean on the pros for advice on expenses you may not be thinking of, so you can work them into your budget. 

Tip #3: Don’t Skip the Inspection 

When you find the right home, it’s easy to get caught up in the excitement. But skipping the inspection just to make your offer look stronger is a gamble that could cost you.

Instead, work with your agent to schedule a real inspection. They’ll connect you with local pros, make sure it’s booked, and help you understand the results so you can negotiate repairs or ask for money off at closing, if needed. It’s better to invest in this time up front to avoid what could be thousands in surprise repairs later.

Tip #4: Your First Home Doesn’t Have To Be Your Forever Home

For a lot of buyers, this is where unnecessary pressure creeps in. But remember, you don’t have to land your dream home right out of the gate. That’s why it’s called a starter home. It’s a starting point, not your final destination.

An agent will help you explore all your options, including ones you may not have thought about. For example, a well-kept condo, a townhouse in a great location, or a house with good bones can be a perfect first step into homeownership. The goal? Get in. Start building equity. Then, grow from there.

Bottom Line

Buying your first place is a big step, but it doesn’t have to feel like a step in the dark. Talk to an agent about where you’re starting from, what’s stressing you out (or holding you back), and what you actually need to know.

What’s one question you wish you could ask an expert right now?

Stay informed