As mortgage rates began to spike last year, homebuilders across much of the country began to reduce their profit margins—which had grown to record levels during the boom—to do things that would entice buyers back into the market. For some builders, that meant offering aggressive rate buydowns, which in some cases lowered buyers' mortgage rate below 5%. In some communities, it required cutting prices by 5%, 10%, or even 15%.
Many of the best builder deals disappeared earlier this year as the U.S. housing market started to show signs of life amid the seasonally stronger spring and summer windows.
