Builder Confidence Hits 14 Year Low-What That Means for Homebuyers

The National Association of Home Builders' Housing Market Index fell to 29 in October — the lowest reading since 2012, and below the 31 economists expected.

Here's what's behind the number:

• 43% of builders cut prices in October — the highest share in years — with an average cut of 6%. That's seven straight months of price reductions.
• 65% of builders are offering incentives — the 19th straight month above 60%.

Translation: new construction is negotiable right now. Builders are competing for buyers, which means price cuts, rate buydowns, and closing-cost credits are on the table in a way we haven't seen in over a decade.

If you've been waiting on the sidelines, this is worth a conversation. And if you're already working with a builder, make sure your financing is lined up to move when the right deal appears — that's where we come in.

VA Choice Home Mortgage — Virginia Beach's VA, FHA, and Conventional loan experts.

* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.