Why your builder wants you to ask for this
October 23, 2026 1:59Dan Ardis, NMLS# 1412272
New mortgage and market updates every week from @bakersfieldlender
Builder confidence just hit a 14-year low, and that gives buyers real negotiating power on new construction. Instead of fighting for a price cut, ask the builder to put incentive money toward buying down your rate. On a $400,000 loan, a full point lower saves about $257 a month, over $3,000 a year.
Executive Order "Decreasing Housing Costs for the American People": directs FHFA to develop a pilot program eliminating mortgage insurance premiums for eligible borrowers, and directs VA and USDA to lower rates on their loans. Details still to come.
Use your negotiating power to force a builder buy down on your mortgage rate.
With new home builders facing record-low confidence, you have more leverage than ever to secure incentives. I break down how to shift the deal in your favor in this uncertain housing market.
Key Points from This Video
- Pending home sales: down 7.3% from August and 11.3% year over year, with all four regions declining. Fewer buyers means more room to negotiate.
- Housing starts: down 5.2% to a 1.22 million annual pace. Builders are pulling back.
- Home completions: down 14% year over year. Less new inventory hitting the market.
- Building permits: edged down. Future supply is shrinking, which tends to support prices.
- Builder confidence: 14-year low in October, driven by high rates, labor shortages, and rising costs. Nervous builders tend to offer more incentives.
- Treasuries: investors moved toward bonds amid unrest in France (500,000+ protesters) and concerns over AI-related debt if companies like Tesla and Meta cut spending. Bond demand can help ease mortgage rates.
Dan Ardis is a Bakersfield-based mortgage broker with 20+ years in the industry, including experience as a Senior Specialty Underwriter. He originates residential and commercial loans for Kern County clients and in 49 states through Barrett Financial Group.
More Videos from Dan
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Why You Should Ask for a Rate Buydown Right Now
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Why 7% mortgage rates aren't the end of the world
First Fed Hike in 3 Years, and It's Not the Last...
The hidden leverage you have as a buyer right now
Questions After Watching?
Dan answers mortgage questions for Bakersfield buyers and investors. Call (661) 342-9381 or get pre-approved online.