All articles tagged with #rate lock
For the first time since 2020, more U.S. homeowners have mortgages at 6%+ than below 3%, signaling a loosening rate-lock in the housing market; about 80% still have rates under 6%, the 30-year average sits around 6.16%, and pockets of activity are emerging as policymakers explore ideas like portable mortgages to spur demand.
KB Home, a homebuilder, is taking a different approach than its competitors by skipping mortgage rate buydowns and instead focusing on customization and rate locks to cater to buyers. The company believes in offering the best price for the best value and allowing buyers to pick everything. While other homebuilders are offering aggressive rate buydowns to entice buyers, KB Home has used this perk sparingly. The rise in mortgage rates has made buying a home more challenging, with rates lingering above 7%. KB Home closed 3,375 homes in the third quarter, higher than expected, but still 6.6% lower year over year. The company remains committed to focusing on the underserved segment of first-time or move-up buyers and expects fourth-quarter home sales revenue of $1.55 billion to $1.65 billion.