New Home Sales surged dramatically in August, defying expectations and turning heads across the housing industry. With a 20.5% jump in new construction purchases, the market is signaling a possible shift as builder incentives begin to pay off. This week’s headlines also include a major guest appearance on LOBC Live, fresh data showing a rise in mortgage applications, and signs of slowing rent growth in the single-family space. For mortgage and real estate professionals, this is a pivotal moment to refocus on new builds, rate trends, and how market psychology is shifting as we head into Q4.
New Home Sales Post Unexpected Large Gain in August
Read the Full Story → NAHB
Sales of newly built single-family homes jumped 20.5% in August to a seasonally adjusted annual rate of 800,000 units, per the U.S. Census Bureau and HUD. Year-over-year, that marks a 15.4% increase. Though year-to-date sales are still slightly below 2024 levels, this spike is catching attention.
The number of new homes for sale dropped slightly to 490,000 units, representing a 7.4-month supply at the current sales pace. Builders are actively using incentives to move inventory, with 66% offering sales incentives and 37% cutting prices.
Builder sentiment remains cautious, but this rebound suggests their aggressive pricing and marketing strategies may be working. Still, analysts caution that this data series is volatile and subject to revision.
LOBC Live Today: Owen Lee Brings Insider Insight.
Join the Live Call → LOBC
The Loan Officer Breakfast Club will feature a powerful industry voice today: Owen Lee, MBA’s 2025 Vice Chairman nominee. Lee brings deep insight into mortgage banking policy and leadership, having served on numerous MBA committees and initiatives.
He co-chairs the MBA’s Independent Mortgage Bankers Executive Council and plays a key role in shaping policy and advocacy for the mortgage industry. Lee’s nomination to the MBA Vice Chair role signals broad respect and recognition from peers nationwide.
You can catch his live industry update on the free LOBC coaching Zoom call, Today, from 8:30AM to 9:00AM ET at breakfastclubzoom.com. Don’t miss this opportunity to get the pulse of the market from a key insider.
Mortgage Applications Increased in Latest MBA Weekly Survey
Read the Full Story → MBA
Mortgage applications rose 29.7% for the week ending September 12, driven largely by a surge in refinance activity, which jumped 58%. Purchase applications saw a modest 3% gain.
The average 30-year fixed mortgage rate dipped to 6.39%, the lowest level in nearly a year. That drop helped motivate homeowners to refinance and gave prospective buyers a little more breathing room.
The uptick in activity suggests borrowers are highly rate-sensitive and ready to act when the market moves in their favor, even slightly.
Single-Family Rent Growth Is Starting to Show New Weakness
Read the Full Story → CNBC
The single-family rental market is seeing softening rent growth, with July numbers up just 2.3% year-over-year compared to 3.1% a year earlier. This marks a slowdown from pandemic highs and reflects affordability fatigue among renters.
Demand remains, but tenants are pushing back on escalating rents. This could signal a shift in leverage back to renters or foreshadow more rental-to-owner migration.
The moderation in rents might also ease inflationary pressures and could help the Fed maintain or cut rates if the trend continues.
Loan Officer Perspective
New Home Sales are back on the move, and that’s good news for originators who work the new home market. Builders are still offering incentives, giving smart loan officers opportunities to partner with small to mid-sized home builders. Partnering with agents and builders to package incentives with loan options can be a winning strategy.
Owen Lee’s upcoming LOBC appearance is a must-attend. He has the pulse on industry trends, regulation, and market forces. His insights could help guide your Q4 game plan.
Also, don’t ignore the refinance bump. As soon as rates move, borrowers react. Be proactive with past clients and ready to reengage those who waited out higher rates.
Real Estate Agent Perspective
The resurgence in New Home Sales means agents should take a fresh look at new construction partnerships. Inventory is slimming down a bit, but incentives are still alive and well—and buyers love options.
With Owen Lee speaking this week, it’s a chance to get industry insights directly from the top. This kind of access helps you better advise your clients and anticipate policy shifts.
Rent growth slowing could mean more renters look to buy. Make sure your outreach includes rental households who may now be closer to being ready—and able—to buy.
Home Buyer & Seller Perspective
If you’re a buyer, now is a good time to explore new construction. Builders are offering deals, rates have dipped, and the market is active. You might find more flexibility and value than in the resale market.
Sellers, take note: new builds are back in demand, so your pricing and presentation need to compete. Understand what’s happening locally and work with your agent to position your home smartly.
If you’re considering buying or selling, reach out to the mortgage or real estate professional who shared this post with you. The landscape is shifting, and a quick chat could uncover a great opportunity.
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