The Quick Read: As of September 28, 2026, builders are offering more concessions and resale inventory keeps building, so buyers hold real leverage. Mortgage rates have climbed four weeks running, which makes lower utility bills and builder credits count for more. Ask for efficiency features that cut monthly costs, and get every promise in writing. Don’t count on a federal tax credit to pay for any of it.
Key Takeaways
- Sixty-six percent of builders used sales incentives in September, the highest share since December, per the NAHB’s September survey.
- Freddie Mac’s 30-year average rose for a fourth straight week in the survey released September 24.
- Resale supply hit a level NAR calls the highest in over ten years, so buyers can negotiate there too.
- The federal builder credit for efficient homes ended June 30, 2026. Negotiate on cost and utility savings, not on a tax credit.
- Ask for proof: an ENERGY STAR certificate or a HERS score, not a brochure.
What changed
Rates rose for a fourth week. Freddie Mac’s weekly survey put the 30-year fixed at 7.03% for the week of September 24, 2026, up from 6.95% the week before. A year earlier the survey read 6.30%. Its path this month: 6.71% on September 3, 6.76% on September 10, 6.95% on September 17, then 7.03%. That is four straight increases, with the biggest jump, 19 basis points, in the middle.
The survey is an average of applications. It is not an offered rate. Mortgage News Daily tracks lender rate sheets in real time, and its index read 7.50% on September 28, 2026, the first time the average lender has been there since April 30, 2024. The two numbers differ because they measure different things. Neither one is “the” rate.
The MBA’s weekly survey, released September 23, told the same story. Its average contract rate for 30-year conforming loans rose to 7.12% from 6.97%. Three weeks earlier it stood at 6.79%. That is 33 basis points in three weeks. Purchase applications ran 11 percent below a year ago, and the refinance index was 62 percent lower.
The Fed hiked. On September 16, 2026, the Federal Reserve’s FOMC voted 12–0 to raise the target range a quarter point, to 3-3/4 to 4 percent. Advisor Perspectives reports markets are pricing one more quarter-point hike this year. That is market pricing, not a Fed promise.
Builders are leaning on incentives. The NAHB’s September release, dated September 16, found 38% of builders cut prices, up from 35% in August. The average cut held at 6% for a sixth month. And 66% used sales incentives, up from 63%. In April, the NAHB had 64% offering incentives and 37% cutting prices. So the incentive habit is not new, but it has widened.
New homes are selling, barely. Census reported August new-home sales at a seasonally adjusted annual rate of 684,000 on September 24. That was 6.4 percent above July’s 643,000, though Census says the change is not statistically significant. Inman reported the average new-home price fell 8.8 percent from a year earlier, to $478,700.
Resale inventory is building. NAR’s August report, released September 10, showed existing-home sales down 2.0% on the month. The median price was $429,100, up 1.6% from a year ago. Supply stood at 4.9 months, up from 4.6 in July. NAR’s Lawrence Yun called that the highest in over ten years and said ample inventory gives buyers better opportunities to negotiate.
Why do builders say yes to green features now?
Builders are already sweetening deals. The most common tool is a financing concession, such as a rate buydown or closing-cost help. Trade press describes builders leading with those. A buydown, though, costs the builder real money and helps only the loan. It says nothing about the house.
My read: efficiency features give you a different kind of value. They cut what you pay every month for as long as you own the home. In a spring market, a buyer could shrug at a utility bill. With rates where they are, it matters more. Every dollar the house saves you on energy is a dollar of budget room.
For the builder, a feature already in the plan is cheaper to hand over than a price cut. It doesn’t show up as a lower comparable sale on the street. Price cuts do. That is why “throw in the upgrade” often goes further than “drop the price.” (I’d still ask for both.)
What about federal tax credits?
Don’t build your ask around one. The federal 45L credit for builders covers homes acquired before July 1, 2026. That window has closed. The homeowner credits for efficiency upgrades and solar ended after 2025, per a tax-firm summary. Check current IRS guidance before you count on anything, and look at what your state or utility offers.
So a builder can’t pass a federal credit through to you. Skip that argument. Lead with cost, utility savings, and certification instead.
Which features are worth asking for?
I rank them by what they do to your monthly budget and how hard they are to fix later. Nothing in my brief gives a payback number for any feature, so I won’t invent one. Here is how I’d think about it.
| Feature | Why ask now | Hard to retrofit? |
|---|---|---|
| Insulation and air sealing | Cuts heating and cooling load | Yes |
| High-performance windows | Comfort and lower load | Yes |
| Efficient heating and cooling | Largest single energy cost | Costly |
| ENERGY STAR appliances | Easy for builder to add | No |
| Solar-ready wiring | Cheap now, costly later | Yes |
The building envelope comes first. Insulation, air sealing and windows sit behind the walls. You will never get a cheaper chance to improve them. If a builder offers a choice between a design-center package and an envelope upgrade, I’d take the envelope.
Heating and cooling equipment is next. It is usually the biggest energy line in a home. A more efficient system is a strong ask, and a builder can often swap it in without redesigning anything.
Appliances are the easy yes. They are also the easiest to replace later on your own. Use them as a sweetener, not a priority.
Solar-ready prep is the cheap option. Wiring and roof planning cost little during construction. I’d ask for that before I’d ask for a full system, though this is a genuine judgment call. A builder facing weak demand might well throw in more.
Here is what I’d ask you to be skeptical about. Resale-premium claims for efficient homes circulate widely. The figures I found trace to a blog and are unverified, so I won’t repeat them. NAR’s consumer campaign says energy efficiency is a growing priority for buyers, as of August 6, 2026. That supports the idea. It doesn’t put a number on it.
Should you take the buydown or the features?
This is the real question, and it has no universal answer.
A buydown lowers your rate for a set period or for the life of the loan, depending on the deal. A feature lowers your utility costs for as long as you own the house. Both trade against something. Nothing is free. The builder priced the concession into the deal somewhere, whether in the sticker, the base features, or the terms.
Consider a plain hypothetical. Say a builder offers you a choice: a temporary buydown or an efficiency package of the same cost to them. The buydown helps most in the early years and fades. The package works the same way in year one and year twenty. If you plan to stay a long time, the package deserves a hard look. If you expect to refinance or move soon, the buydown may fit better. If rates fall, the buydown’s value shrinks, so keep that in mind.
Ask for everything in writing, in one document: the price, the concessions, the features, the certification. Then compare offers on all-in terms, not headlines.
My take
I don’t think this is a buyer’s market in the full sense. Purchase applications are down 11 percent from a year ago. Demand is weak, but so is affordability. Builders and sellers are responding to a real shortage of buyers who can make the numbers work.
That gives you leverage, and it also gives you a warning. A builder discounting hard may be short on buyers because the deal doesn’t pencil for anyone. Don’t confuse a concession with a bargain.
Two facts cut against the easy story that prices are collapsing. The NAHB’s average cut is 6%, and only 38% of builders cut at all. The Census new-home price data is noisy. The average fell 8.8 percent, which Inman calls significant, but the median change is not statistically distinguishable from zero. A shift toward smaller, cheaper homes could explain part of it. Meanwhile the existing-home median rose 1.6%. New construction can look like value next to resale, but check the square footage before you celebrate.
And one more caution. One month of higher new-home sales is not a rebound. Census said so itself.
What I’d do now
Get your financing in order first. You negotiate better when you know what you can carry. Look at loan options before you walk into a sales office. The linked page carries current guidelines, and eligibility is subject to lender guidelines.
Understand rate locks. A lock holds a quoted rate for a set period, so a move up doesn’t hit you mid-process. If you like the terms and the house, lock. Floating is a bet that rates fall. With four straight weekly increases behind us, that is a bet, not a plan. Also remember that quotes gathered on different days are not comparable, because the market moved between them.
Ask for proof. Request an ENERGY STAR certificate or an HERS score in the contract. Marketing claims about windows and appliances often trace to older surveys. A certificate is checkable.
Use resale as leverage. With supply at its highest in over a decade, builders know you can walk into a resale listing. Mention that comparison openly when you negotiate, since it shows you have real alternatives.
Buying a second home? Reserves and property-use questions can matter a great deal. Two of our explainers may help: how business cash can count as reserves on a second home, and how a resort property is treated as a second home versus an investment.
If you’re weighing a purchase or a refinance this fall, Lendmire can walk you through how the current programs fit your file.
For the end-to-end picture of how these loans work — qualification, structures, and the full process — see Lendmire’s complete DSCR loans guide.
Frequently Asked Questions
Are builders really cutting prices in September 2026?
Some are, but most lean on incentives instead. A published survey found 38% of builders cut prices, with an average cut of 6%. A larger group, 66%, used sales incentives. Expect concessions more often than lower sticker prices.
Can I still get a federal tax credit for an efficient new home?
Not through the builder credit. The 45L credit covered homes acquired before July 1, 2026, per the Department of Energy. The homeowner credits ended after 2025. Check IRS guidance and your state or utility for anything current.
Is 7% the peak for mortgage rates?
I can’t call a peak, and nobody can. Freddie Mac’s survey read 7.03% for the week of September 24. Mortgage News Daily’s daily index read 7.50% on September 28. The survey lags the daily market. Markets are pricing another Fed hike, but that is pricing, not a commitment.
Why do Freddie Mac and Mortgage News Daily show different rates?
They measure different things. Freddie Mac surveys applications over a weekly window. Mortgage News Daily tracks lender rate sheets in real time. The gap was 47 basis points this week. Neither is an offer to you.
Should I negotiate on a resale home too?
Yes. NAR’s August report showed 4.9 months of supply, the highest in over ten years, and Lawrence Yun said that gives buyers better opportunities to negotiate. Ask for repairs, credits, or efficiency upgrades the same way.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage broker with two platforms: DSCR investor lending across 41 markets, including Washington, D.C., and consumer mortgage programs in 16 states, all arranged through wholesale lending partners. This column is written by Lendmire’s founder and reflects the market as of its publication date; program terms and availability are set by the lender on each file. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Freddie Mac Primary Mortgage Market Survey
2. MBA Weekly Applications Survey, September 23, 2026
3. Federal Reserve FOMC statement, September 16, 2026
4. NAHB builder sentiment release, September 2026
5. Inman
6. NAR existing-home sales, August 2026
This article is part of Lendmire’s Mortgage News series — every loan program’s qualification details, guidelines, and scenarios live on the loan options page.
Related reading: Mastering the Homebuying Sprint: Essential Steps to Be Closing-Ready Before Memorial Day Weekend · Harvesting Savings: How Fall’s Bounty Can Help You Prepare for the Homebuying Journey · How Self-Employed Borrowers Qualify for Bank Statement Loans in 2026
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Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.