As Mortgage Rates Soar, Buyers and Sellers Explore Creative Financing Options
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Mortgage rates are at 22-year highs, making homebuying unaffordable for many. This series explores alternatives to traditional financing.
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Adjustable-rate mortgages have grown in popularity, though overall mortgage applications are down. Their risk depends on future rate moves.
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Builders offer "buydowns," paying lenders upfront to lower mortgage rates for buyers by 1-2 percentage points. This supports new construction sales.
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Seller financing is increasing, with motivated sellers providing more favorable loan terms than banks.
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More all-cash purchases, partly reflecting investors but also homeowners tapping equity or buying with cash after selling a home.