National Association of REALTORS® Deputy Chief Economist, Dr. Jessica Lautz, notes that buyers during the 90's were more comfortable purchasing houses in the 7% interest rate as "home prices and inventory were more in line with wages and the population then."
As inventory remains sparse, buyers' purchasing power depletes as interest rates continues to soar, new construction builders are enticing buyers and their agents with incentives. This include paying for all closing costs, a 2/1 buy down program (in which buyers pay a lower interest rate/monthly payment temporarily for the first couple of years on their mortgage), stainless appliances included as part of the sales price including a washer and dryer, and paying the Realtor fee thousands of dollars in bonuses for introducing their client to a development community and closing on one of their builds.
