by BLACK ENTERPRISE Editors
Each month, NewHomeSource parent company Zonda surveys homebuilders to understand current trends and market sentiment.
Each month, NewHomeSource parent company Zonda surveys homebuilders to understand current trends and market sentiment. While these surveys are primarily focused on builders’ business conditions, they also offer clues for homebuyers about what’s happening — and what could be coming — in the housing market.
Below are three takeaways from the September responses that buyers should know.
Lower mortgage rates aren’t moving the needle. Interest rates dipped slightly in September, coming close to 6%, before increasing to around 6.3% to end the month. Builders report the small decrease hasn’t noticeably increased buyer traffic or demand. Many builders are still offering mortgage rate buydowns — discounts that can lower a buyer’s interest rate by more than a full percentage point in some cases. Even these incentives aren’t pulling some hesitant buyers off the sidelines. Economic uncertainty and job instability are keeping many would-be buyers cautious, regardless of the small changes in interest rates.
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Tariffs are not a top concern. Tariffs have the potential to affect material costs, which could lead to higher home prices. However, September’s survey shows that builders haven’t seen significant impacts yet. Most report that the total cost of building a home has remained relatively stable.
Bottom Line
Rates and prices remain steady, incentives are still in play, and new inventory could be on the horizon. For buyers, especially those looking at new construction, that’s a landscape worth watching.
This story was produced by NewHomeSource and reviewed and distributed by Stacker.
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Source: Black Enterprise
