Author:

Welcome to Built Different — I’m Levi Wanner, owner of Infinity Homes. Today we’re digging into a
key turning point in the housing market that matters for builders, sellers, homeowners — and the
broader economy.
According to a recent Market Watch article, mortgage rates on the 3 0n year fixed are hovering near
the 6 % level. When rates drop and especially when they cross psychological thresholds (in this case
“below 6 %”), it can unlock a wave of refinancing. The article highlights that about 20 % of the U.S.
mortgage market currently has rates at 6 % or higher, meaning a large group of homeowners may be
poised to refinance if rates go down further.
This refinancing wave could stimulate spending, increase home mobility, and create ripple effects
throughout the housing, construction, and consumer markets — exactly the kind of momentum that
can help drive economic growth.
Homeowners refinancing from higher rates free up monthly cash flow, which often gets reinvested
into home improvements, furnishings, or new builds. Lower rates also encourage more moves and
new construction activity, which creates jobs and boosts confidence.
For builders and contractors, this means renewed demand for materials, crews, and project pipelines.
For local economies like Billings and across Montana, it can translate to more transactions, more
development, and stronger communities.
In short — the drop toward 6 % could be the spark that reignites the housing engine, driving growth
from dirt to deals.
Thank you for reading — stay sharp, keep building, and let’s go win. — Levi Wanner

What’s Happening
U.S. existing home sales rose at their fastest pace since February in September as mortgage rates
eased. This renewed buyer activity indicates stronger momentum in housing, signaling a shift toward
confidence. For builders, that’s more than a headline—it’s a market signal that buyers are starting to act
again.

Why This Matters for Builders
When resale inventory moves faster, buyers feel urgency, often spilling into new construction. If you
have spec or near-finished homes, this is the time to convert that pipeline. The mix of easing rates and
rising activity provides a clear marketing message: ‘Homes are moving—don’t wait.’

The Caveats
The AP data reflects existing-home activity, not necessarily new builds. Construction still faces
bottlenecks—materials, labor, weather, and local permits. And while national momentum is positive,
each market responds differently depending on lot supply, entitlement timelines, and workforce
availability.

Actionable Moves
• Re-audit your starts schedule and accelerate near-finished homes. • Push updated marketing with
urgency-based messaging. • Lock in trades and materials early to avoid capacity crunches. • Review lot
and entitlement status on upcoming projects. • Model both surge and flat-demand scenarios to manage
cash flow.

Big Picture
For builders scaling in Montana and beyond, this isn’t just optimism—it’s opportunity. Market surges
reward those who act early. Your advantage is execution speed and control; use this momentum
window to secure new starts and capture buyer demand.

Final Thought
The AP headline signals movement, not hype. Align your schedule, reinforce your supply chain, and
move decisively. Momentum favors builders who are ready when the market blinks green

More buyers are walking away from home purchases than we’ve seen in years — and it’s starting to
show up even in markets like Montana. According to Redfin’s August 2025 data, roughly 56,000
home-purchase agreements were canceled nationwide, about 15.1% of all deals that went under
contract that month — the highest August rate since tracking began in 2017. That means 1 in 7 buyers
who say “yes” are later saying “never mind.”

1. Inspections Are Killing Deals

The biggest reason buyers back out right now is inspection fallout — it accounted for about 70% of all
cancellations in Redfin’s survey. Buyers are using inspection reports as leverage. Some demand
unrealistic repairs; others simply walk when they see maintenance costs they didn’t plan for. Even
when sellers fix the issues, the buyer may still get cold feet. Montana Angle: Older homes and harsh
weather make inspection items common — roof age, foundations, and heating systems often trigger
renegotiations. A pre-listing inspection can help sellers avoid these surprises.

2. Financing and Appraisals Are Falling Through

Roughly 28% of cancellations happen because of financing issues — rate jumps, tighter underwriting,
or low appraisals. Montana Angle: In smaller markets, fewer comps mean appraisals can come in low,
forcing buyers to find more cash or back out.

3. Buyers Are Struggling to Sell Their Current Homes

About 1 in 5 deals fail because buyers can’t sell their existing home in time. Montana Angle: This
especially affects move-up buyers in Billings, Bozeman, and Missoula. They depend on selling their
first home to fund the next one, so a delayed sale can domino the entire transaction.

4. Financial Fear & “Better Options” Syndrome

Nearly 13–15% of buyers cancel for emotional or financial reasons — job uncertainty, stock dips, or
finding another property they like better. Montana Angle: As inventory grows, buyers feel less pressure
and more freedom to walk if something else catches their eye.

What This Means for Montana Sellers

If you’re building, selling, or listing in Montana right now, here’s the playbook to keep deals from
collapsing:
1. Pre-Inspect Before You List — Know your issues before buyers do and fix small stuff
upfront.
2. Require Strong Pre-Approvals — Don’t accept “pre-qualified.” Get proof of funds or
underwriting done.
3. Tighten Contingency Windows — Shorten inspection and financing deadlines to
reduce risk.
4. Prepare for Renegotiation — Offer small credits rather than large price cuts. 5. Stay
Emotionally Neutral — Keep your property show-ready and move quickly to the next buyer.

The Big Picture

Montana’s market is cooling from the chaos of 2021–2023 but remains strong. Prices are up around
2.4% year-over-year, and quality homes are still selling — but buyers are cautious, lenders are strict,
and deals are fragile. The sellers who win are the ones who anticipate friction, not those caught off
guard. Bottom Line: Buyers cancel for emotional, financial, and logistical reasons — not just because of
you. But in a market shifting toward balance, the most prepared seller still controls the outcome.

You may have noticed: the ultra premium houses, the ones you’d expect to sit a while, are getting
snatched up faster than normal. That’s no accident. Here’s what’s pushing high-end listings forward —
and what builders, agents, and buyers need to know.

1. Cash & All Equity Buyers Dominate at the Top

In luxury real estate, the financing barrier is smaller. Wealthy buyers often don’t need a mortgage, or
put large equity down, so they avoid appraisal delays, underwriting fights, and financing contingencies.
That makes their offers tighter, cleaner, and more desirable.

2. Inventories Are Lean in the High End

Most people think luxury houses take longer to sell because they’re niche. But right now, there aren’t
enough “premium” listings to meet demand. Affluent buyers are looking, and supply is weak. So when
one quality listing hits the market, it gets attention and gets offers quickly.

3. Staging & Ultra Premium Presentation Pay Huge Dividends

At entry-level listings, buyers will accept flaws. But in the luxury tier, expectations are different. Every
detail matters — finishes, lighting, flow, views, custom elements. Sellers and agents in this space invest
heavily in staging, photography, virtual tours, and branding, making the perceived value high from day
one.

4. Lifestyle Plays & Emotional Resonance Move Buyers

High-end buyers are buying more than square footage. They’re buying status, peace, luxury,
exclusivity, brand. When a listing reflects a dream — a view, a custom kitchen, a resort-level yard —
buyers act fast to secure it before someone else does.

5. “Smart” Timing & Strategic Marketing

Luxury sellers almost never list randomly. Their agents pick timing, pre-market buzz, invite-only
previews, private showings, and targeted networking. They prime the buyer pool before the official
listing. That creates pent-up demand so when the doors open, multiple buyers rush in.

6. Less Price Resistance / More Flexibility at the Top

In some mid-market tiers, buyers have tight budgets and maxed-out financing. But luxury buyers often
have flexibility. If they believe a house is special, they’re more willing to stretch. That gives sellers more
margin and makes the negotiation smoother and faster.

7. Sophisticated Buyers Move Quickly

Many high-end buyers are experienced investors, second-home buyers, executives, or real-estate
veterans. They’re decisive and know what they want. When they see “right,” they act. Unlike first-time
buyers who may drag feet, these buyers don’t waste time.

What This Means for You (Builder / Agent / Investor)

If you’re building or selling a luxury home, don’t hold back on finishes, staging, and marketing. Marginal
quality gets punished. Get your listing polished before it goes live. Teasers, video walkthroughs, private
previews — build momentum. Treat offers differently: prioritize clean ones over highest ones (because
speed = certainty). Maintain your network of high-capacity buyers. Have a list of people who can act
quickly. Recognize when to walk away — overpriced luxury often lags. Be competitive, but know your
ceiling.

Man, the market just pulled a left turn on us. In August 2025, new home sales jumped 20.5% from July,
hitting a seasonally adjusted annual rate of 800,000 units. That’s way above what most economists
were expecting, and it’s got everyone scratching their heads.

What Just Happened

• The surge wasn’t just a blip. Year over year, new home sales are up 15.4%.
• Builders got aggressive with incentives—price cuts, mortgage buydowns, perks—to get deals moving.
• The median price for new homes sold in August was about $413,500, up from July’s $395,100.
• Inventory for new homes is getting tighter: August’s “months’ supply” dropped to 7.4 months, down
• from 9 months in July.

Why This Matters (Especially for Me, You, the Builder/Coach)

• Demand can respond to the right price + incentives. When conditions shift, buyers move.
• Margins get squeezed when incentives escalate. You better be tight on build costs and project management.
• Speed and execution become advantage. Whoever knocks out houses clean, fast, and reliably wins.
• Watch existing home market cracks. While new homes soared, resales stayed weak. That’s opportunity.
• This may be volatile. A 20.5% jump is dramatic and could be revised.

What I’d Be Doing Right Now, If I Were You

1. Audit your cost structure — negotiate with suppliers, streamline waste, lock in labor & materials.
2. Offer smart incentives, not blanket discounts — buydowns, upgrades, credits can feel more valuable.
3. Pick your projects wisely — focus on products and price ranges with real demand.
4. Communicate with speed and transparency — confident buyers pull the trigger.
5. Plan for the fallback — if the market cools, you need a buffer.

The Big Picture (From My View)

I’m not saying the housing slump is over, but this is a shot of adrenaline. The question is whether September and October follow or if this was a one month spike.

For builders and investors: this is your window, but tread smart. Fundamentals are still volatile.

For buyers: you might see better trade terms, more choice, and less competition.

I’ll be watching the next reports like a hawk. If this trend continues, we’ll see a shift in what’s “normal” —
and you want to be on the right side of it.

If you’ve ever thought the U.S. housing market was frozen in place—think again. In July 2025, the tide began shifting, subtle yet meaningful. Here’s why the market feels built different these days, thanks to modest gains in sales, easing price pressures, and rising inventory.

What’s Really Going On

• Sales Are Pushing Up – Existing home sales rose 2% in July, hitting a 4.01 million annualized rate—above forecasts.

• Prices Are Cooling Off—A Bit – The national median price nudged up just 0.2% year-over-year, landing at $422,400, the smallest annual increase since June 2023.

• Inventory Is Climbing – 1.55 million homes for sale in July, up 15.7% YoY, a 4.6-month supply, highest since early pandemic days.

• Affordability Shows a Glimmer of Relief – Slower price growth, rising wages, and growing supply are making buying slightly easier.

• Regional Nuances & Other Shifts – About half of the U.S. may now be experiencing outright declines in home prices. All-cash deals = 31%, investors = 20%, first-time buyers = 28%.

Built Different Takeaways

• Inflection Point, Not Overhaul – Cooling prices and rising inventory signal easing, not a total reset.
• More Supply = More Leverage – Buyers are gaining negotiating power as homes stay listed longer and price cuts grow.
• Affordability’s Soft Turn – Wage growth outpaces price growth, giving buyers some breathing room.
• Not One-Size-Fits-All – Some regions still rise while others, especially in the South and West, are dipping.

TL;DR: July’s Housing Market, Built Different

When most of us hear “mortgage rates below 6%”, you can almost feel the sigh of relief—like winning a mini lottery. And yes, it’s good news, but let’s not oversell it. As of mid August 2025, the average rate on a 30 year fixed mortgage has slipped to 6.63%—the lowest since April. Still, it hasn’t broken the 6% barrier yet. Let’s break down what’s really going on—and what truly moves the needle for homebuyers.

The Reality: Most Borrowers Are Already Enjoying Rates Under 6%

Believe it or not, over 81% of outstanding mortgages are already below that 6% mark. So yes—those new buyers coming in at ~6.6% are actually paying more than many current homeowners. That keeps a massive “lock-in effect” firmly in play: people with low-rate loans simply aren’t in any hurry to move.

Why We’re Still Watching Rates Like Hawks

• Small Relief, Real Impact – Mortgage rates fell about ~0.05 percentage points (to 6.63%)—a modest drop, but not nothing.
• Greater Inventory Brings Buyer Power – Listings are up nearly 25%, pushing active For-Sale inventory above 1.1 million. Homes are staying on the market longer, letting buyers catch a break on pricing and options.
• Affordability Still Gets Squeezed – Even with a drop to “low 6s,” carrying costs remain high compared to previous years. While it helps, it’s no reset button on affordability.

Built Different Takeaways

• Don’t Let the “<6%” Headline Fool You – New buyers are often competing with sellers who locked in much lower rates.
• Better Rates Are Nice—but They’re Just One Piece – Lower rates help, but inventory and negotiating power matter too.
• Better Than Nothing? Yes. Game-Changer? Not Yet – The dip to ~6.63% is welcome, but affordability is still tight.

TL;DR: Built Different Housing Market

• Headline Relief: Average 30-year rate = 6.63%, lowest since April.
• Most People Already Beat That: ~81% of mortgages are below 6%.
• Inventory Boost = Buyer Leverage: Listings up ~25%, longer market times.
• Lock-In Reigns: Low-rate holders are staying put, limiting turnover.
• Bottom Line: Slow easing, not affordability relief—yet.

Higher Price, but More Perks

New homes generally come at a premium. The median sale price for new construction-around 4%  higher than existing homes-is typical, with recent figures showing new-builds priced around $430K vs. $394K for existing homes. But these builds offer customization, modern finishes, energy efficiency, and warranties not typically found in resale homes.

Incentives Can Balance the Cost

Many builders sweeten deals with incentives-rate buydowns, closing-cost credits, or upgrade packages. These can make monthly payments more competitive than resale pricing, offsetting the initial cost difference.

Current Market Signals Favor Buyers

New home sales fell 14% in May, and many builders are offering price cuts. Housing starts are also dropping, leveling supply and giving buyers more leverage.

Pros & Cons of Choosing New Construction

Pros:

– Customization

– Modern efficiency and low maintenance

– Builder incentives

– Less competition

Cons:

– Higher upfront price

– Construction delays

– Quality concerns

Decision Guide: When New Builds Make Sense

If resale options in your preferred area are limited or outdated, new construction offers supply where existing homes fall short. The current market slowdown has put builders in a position to negotiate, and long-term benefits like warranties and energy savings improve cash flow over time.

TL;DR

– New builds are typically ~4% more expensive, but incentives and modern features may make them a better value.

– Incentives and lower competition make this a buyer-friendly moment.

– New builds often fill gaps where existing-home inventory is weak.

– Energy efficiency and warranties reduce future costs.

Final Takeaway

New construction isn’t always cheaper-but in today’s shifting market, strategic deals, more inventory, and builder flexibility make it a compelling option. If you value customization, modern efficiency, and warranties-and can time the incentives-it may well be the better buy.

Home Price Growth Is Slowing to a Crawl

As of late July 2025, the median U.S. asking price rose just 2.2% year-over-year, the smallest increase since mid-2023. Similarly, the median sale price hit an all-time high near $399,000, but growth was only 1.6% YoY. This cooling signals a transition out of hyper-competitive territory — price hikes are tapering off, giving buyers more room to negotiate.

Buyers Are Gaining Leverage

Active listings in May reached a five-year high, and though June’s supply dipped slightly, inventory remains 13–16% above last year’s level. Sellers outnumber buyers by roughly half a million. Fewer homes are selling above list price, and the average sale-to-list ratio is around 99%, signaling increased buyer-friendly conditions.

Mortgage Payments Are Starting to Fall

The typical U.S. monthly housing cost dropped to about $2,679, its lowest level in five months, even with rates holding around 6.7%. Slowing price growth is pushing overall housing costs down.

Sellers Are Offering More Concessions

Nearly 44% of homes sold in Q1 2025 included seller concessions-such as covering closing costs, repair credits, or rate buydowns-up from 39.3% in 2024. In softer metro markets, concessions and price cuts are increasingly common.

Economists Expect Prices to Fall by Year-End

Redfin economists forecast a modest annual home price decline (~1%) by end of 2025. However, if you wait too long while listings dry up, negotiating power could swing back to sellers by late 2025.

TL;DR – Why Now Might Be Smart

Slowest price growth: Buyers have room to negotiate

High inventory/supply: Better selection and leverage

Falling mortgage costs: Payments cooling off

Seller concessions rising: Increased incentives

Predictions favor buyers: Entering early gives control

How to Make the Most of It

– Get pre-approved to act fast.

– Look for listings on market 30+ days.

– Ask about seller concessions.

– Consider overlooked segments like condos.

– Lock mortgage rates during dips.

Final Thoughts

If you’ve been waiting out the frenzy of 2020–2024, the current market may feel like a welcome shift back toward fairness. While home prices are still high by historical standards, growth has slowed dramatically — and buyer demand remains subdued. With record inventory, increasing seller flexibility, and lower monthly payments, now may offer a narrow but real window of opportunity.