Builder confidence has hit its lowest point in a year, with the latest index dropping 3 points to 32 in late Q3. Current sales conditions fell to 35, and expectations for the next six months eased to 37. Buyer traffic remains steady at 23. Interestingly, 38% of builders nationwide have chosen to cut prices, and two-thirds are now offering incentives—an increase since mid-Q3. Meanwhile, mortgage applications for new-home purchases declined for the fifth straight month, as average 30-year rates stayed in the high-6% range. Larger builders are responding by offering rate buydowns, giving buyers a chance at below-market mortgages without depending solely on price reductions. With 30-year rates near 7%, two leading housing forecasters expect these higher rates to continue through 2027. As a team with deep experience in new construction and representing clients throughout Spring Lake, Grand Haven, and Muskegon, we’re watching these market shifts carefully—especially as they impact those considering building or buying a new home. Our focus remains on helping clients navigate these trends, whether you’re looking for waterfront properties, single-family homes, or the latest in new construction.
Leave a Reply