High rates had ‘chilling effect’ on new-home purchase market in September: MBA
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Scotsman Guide reports that the Mortgage Bankers Association found high interest rates put a chilling effect on new-home purchase applications this September, making for a difficult opening to the fall season for builders. The data points to a market where elevated borrowing costs are squeezing demand for newly constructed properties, leaving builders with inventory and prospective buyers with fewer viable paths to purchase.
For builders and investors watching demand soften, the current environment rewards financing structures that do not depend on conventional wage-earner underwriting. loantrust.ai operates directly in this space, offering DSCR loans that qualify on property cash flow rather than personal income, bank-statement programs for self-employed borrowers, and bridge financing for projects caught in a slower sales cycle. One licensed MLO packages every file personally, which means the strategy conversation happens with the same person who structures the loan rather than a rotating call-center queue.
Builders who can pivot to investor buyers or who need to carry inventory through a rate plateau need a mortgage partner that understands non-traditional credit boxes. The same dynamic applies to rental-property investors acquiring completed units that first-time buyers can no longer finance conventionally. In a market where standard purchase applications are retreating, alternative programs are not niche products—they are the practical mechanism that keeps transactions moving.
Source: Scotsman Guide, “High rates had ‘chilling effect’ on new-home purchase market in September: MBA”. Read the original →
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Hans Michel, Mortgage Loan Originator, NMLS #2857209 · LoanTrust is a dba of RentAssure Inc. · Licensed in Georgia · NMLSConsumerAccess.org · Equal Housing Opportunity. Nothing on this site is a commitment to lend — all loans subject to underwriting and approval. DSCR, fix & flip, bridge, new construction, multifamily, and bank-statement programs are business-purpose loans for investment properties only.