Will The Housing Market Collapse? 🏠

#housingmarket #realestate #lennar #homebuilders #mortgagerates Home prices across the U.S. have not collapsed. The S&P Cotality Case-Shiller National Home Price Index still sits close to record highs, so on the surface the housing market looks stable. Underneath, the country's largest builders are quietly cutting what homes really cost. Lennar, one of America's biggest homebuilders, is offering a stack of deals on homes in the Atlanta metro: a promotional 3.99% FHA 5/1 adjustable-rate mortgage, fixed for the first five years before it adjusts every year, up to $15,000 toward closing costs, and on select homes as much as $25,000 in extra price cuts. Builders have always used incentives, but in Lennar's most recent quarter they averaged roughly 12% of the sale price. Most of that discount is hidden in mortgage rate buy-downs and closing-cost help rather than in lower sticker prices, so the listed prices barely move while the effective price keeps falling. Even with those discounts, Lennar's new orders still fell more than 9% from a year earlier, which suggests buyers are being priced out by monthly payments rather than by sticker prices. Related Video: America’s Biggest Homebuilder Just Revealed a Serious Housing Problem