Rate Buydowns - A lifeline for home builders and buyers?
11.19.2023
In a housing market facing declining builder confidence, major new construction companies like Lennar are finding innovative ways to keep business going. Despite the recent dip in the National Association of Home Builders/Wells Fargo Housing Market Index, these companies are successfully leveraging mortgage rate buydowns to maintain momentum.
Rate buydowns, where builders temporarily reduce mortgage rates for buyers, are proving effective for both attracting buyers and maintaining sales. For example, our partnership with Lennar offers enticing rates, like a fixed 5.25% mortgage* in South Florida, demonstrates resilience in a challenging market.
It's important for buyers to remember that these buydowns are short-term solutions. As the market evolves, considering long-term financial planning and consulting with experts is crucial for informed decision-making.
In these times, innovative strategies like rate buydowns by major builders are key to navigating the housing market.
-Josip Rupena, Milo CEO
*Requires 40% downpayment. Terms apply. Only applicable to new Lennar home purchases. Contact Sales at colin@milo to learn more. Offer valid through 11/30/2023.
Quick News & Insights
Mortgage rates trend down for the third straight week, HousingWire
Down payments on homes are getting bigger. But there are ways to put down as little as 1%, MarketWatch
Homebuilder sentiment unexpectedly plummets to lowest level this year, Fox News
The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.
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