By Jonathan Plummer · Updated November 2026
Drive past almost any new community around Concord right now and you'll see the banners. Closing costs paid. Rates in the 4s and 5s. Thousands off. Some of that is a genuinely good deal. Some of it is a good ad. The trick is knowing which one you're looking at before you sign anything.
Why Builders Are Dealing Right Now
Per the NAHB/Wells Fargo Housing Market Index, 43% of builders cut prices in October, the highest share NAHB has recorded since 2020. The average cut held at 6%. And 65% offered sales incentives, the 19th month in a row that at least 60% of builders did. Builder confidence fell to 29, the lowest reading since June 2012.
Supply is part of the story. Census data shows 8.4 months of new home supply nationally in September, and the median new home sold for $400,400, down 3.9% from a year earlier.
Put simply, builders have homes to move. A lot of them would rather put money toward your rate or closing costs than drop the list price, because a lower sticker price becomes a comp for every other home in the neighborhood. That's where the incentives come from.
The Market Rate Isn't Low. The Builder's Rate Is.
Let's be straight about rates. Freddie Mac's 30 year fixed averaged 7.24% as of October 29. That's down from 7.32% the week before, but up from 6.17% a year ago. Nobody is handing out cheap money right now.
When a builder advertises a rate well under that, it's because the builder is paying the lender to buy it down. That can be real savings. On a $380,000 loan, principal and interest at 7.24% runs about $2,590 a month. At 5.99% it's about $2,276. That's roughly $314 a month back in your pocket, before taxes, insurance, and HOA, which aren't included in either number. Your lender should run the real figures on your actual loan.
Four Questions to Ask About Any Promo Rate
Is it fixed or adjustable? Many of the lowest advertised rates are adjustable rate loans, like a 5/1 or 7/6 ARM. The rate is locked for five or seven years, then it can change. That can still make sense, but you should know it going in.
What's the APR? The APR folds in fees and loan costs. On some current promos the APR sits a few full points above the headline rate. The big number on the banner is the rate. The small number in the disclaimer is the one to compare.
Is it permanent or temporary? A 2 1 buydown lowers your rate by two points in year one and one point in year two, then it goes back to the full rate for the rest of the loan. On a $380,000 loan at 7.24%, that buydown is worth about $8,950 of builder money. Helpful, but your payment goes up in year three, so budget for the full rate from day one.
Is it tied to the builder's lender? Almost always. You're usually not required to use their lender to buy the home, but you typically have to use it to get the incentive. Run both scenarios side by side, the builder's lender with the incentive and an outside lender without it, and compare total cost, not just the monthly payment.
How I'd Actually Play It
Get preapproved with an outside lender first. Now you have a baseline, and the builder's offer has something real to beat.
Start with quick move in homes. A finished or nearly finished home costs the builder money every month it sits, so that's usually where the most flexibility lives.
Watch the dates. A lot of these promotions come with contract by and close by deadlines, and plenty of them end with the year. Read those before you fall in love with a floor plan.
Get every incentive in writing on the contract. If it isn't in the paperwork, it isn't in the deal.
Bring your own agent. The friendly person in the model home works for the builder, not you.
The Bottom Line
This is one of the better windows in years to negotiate with a builder. But the deal lives in the fine print, not on the banner. Know your baseline, compare APRs, plan for the full payment, and get it all in writing. Trust the process, not the sign out front.
If you're eyeing a new build and want a second set of eyes on the incentive package, that's a five minute conversation. Book time here
Jonathan Plummer
jonathan@jonathanplummer.com
980.890.4155
FAQs
Are builder incentives worth it right now?
They can be. Per NAHB, 65% of builders offered incentives in October 2026 and 43% cut prices. The value depends on the details: whether a promo rate is fixed or adjustable, its APR, and whether you have to use the builder's lender. Compare it against an outside lender quote before deciding.
What is a 2 1 buydown?
A temporary buydown where your rate is two points lower in year one and one point lower in year two, then returns to the full rate for the rest of the loan. The builder or seller pays the cost upfront. Budget for the full rate payment, since that's what you'll pay from year three on.
Do I have to use the builder's lender?
Usually not to buy the home, but most builders tie their best incentives to their preferred lender. Get a quote from an outside lender too, and compare total cost in writing before you commit.
Do I need my own agent to buy new construction?
You don't have to, but the builder's sales rep represents the builder, not you. Your own agent can review the contract, negotiate incentives, and track deadlines.