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Builders cut prices in some U.S. metros as mortgage rates climb
Freddie Mac data shows the 30-year mortgage rate averaged 6.55% as of Thursday, leaving buyers hesitant and inventory harder to move.
MarketWatch reports that while existing-home prices have reached a new record high, newly built homes are increasingly being sold at discounts as builders try to clear inventory.
The outlet links the pricing pressure to a rise in mortgage rates, noting that the 30-year mortgage rate averaged 6.55% as of Thursday, well above the sub-6% levels that supported buyer demand earlier in the year.
MarketWatch adds that with many homebuyers staying on the sidelines, builders are cutting prices in multiple U.S. metro areas to attract demand for new homes.