In the second half of 2022, homebuilders across the country were scrambling as spiked mortgage rates caused buyer cancellation rates to soar. In response, many builders quickly ramped up their incentives, including offering "mortgage rate buydowns." While builders in fast-correcting markets like Reno and Austin had to go much further, and slashed new community home prices by 10%, 15%, or in some cases even 20%.
Those incentives and price markdowns are working now: New home sales on the rise again, and builder cancellation rates normalized this spring.
