Buying new construction with 7% mortgage rates: builder rate buy-downs, pre-drywall inspections, buyer's agents and this week's product recalls.
This week's Punch List is a quick one. I recorded from a hotel room in Rochester, MN, near the Mayo Clinic, because family comes first, so forgive the scratchy voice. Next week we're back with a fresh show.
The housing market is weird right now. Mortgage rates are over 7%, but prices are drifting down, so if you can handle the payment it may be a smart time to buy. Builders are getting creative to move houses. They're buying down points, cutting their realtor commissions and, in some cases, cutting corners on the build. I walk through how a builder buying down two points can steer you toward new construction, and why that sweet monthly payment can come with drywall surprises later. I also don't think we're going back to 3% rates. 5% is the new comfort zone.
If you're buying new, get a local new-construction inspector on a pre-construction contract to check the concrete, framing and pre-drywall. And don't cheap out on your agent. When the builder knocks commission down to 1%, you lose the person who's supposed to fight for you.
We also ran through the recalls, including propane fireplace lava rocks that can explode and trimmer mowers that can catch fire. And I had a few words for the internet folks upset that Tillamook is Halal-certified. It's about how the cheese is made. Do two seconds of research.
In this episode:
- Why falling prices and 7%+ rates make timing and math everything
- How builder point buy-downs work and how they steer buyers
- Hiring a new-construction inspector for concrete, framing and pre-drywall checks
- Why paying a market-rate buyer's agent protects you
- Where long-term mortgage rates are likely to settle
- Recalls: propane fireplace inserts and lava rocks, recalled trimmer mowers
- The Tillamook Halal-certification panic
Links: https://aroundthehouseonline.com
Takeaways:
- I'm on the road in Rochester with a shot voice from a pre-90s hotel room, so forgive the rasp while I walk you through why high interest rates make buying tricky even as prices fall.
- We think right now is a weird sweet spot: prices are dropping, but seven-percent mortgage pain makes timing and math everything, so buying only makes sense if you can stomach higher payments short-term for potential long-term gains.
- Builders are aggressive—buying down points and skimping on workmanship—so I recommend locking in a local new-construction certified inspector for concrete, framing, and pre-drywall checks to catch shortcuts early.
- Don't cut realtor corners: when builders slash commissions to one percent you lose an advocate; pay market rate for an agent who will actually fight for you and protect future costs.
- Heads-up on recalls and safety: stop using certain propane fireplace inserts and recalled trimmer mowers, and check with manufacturers or REI for fixes—small products can create big fire or crash risks.
- And for some delightful social-media nonsense—Tillamook being Halal-certified isn't a cultural takeover, it's better cheese production choices; I call out the dumb panic and remind you to do two seconds of research.
Links referenced in this episode:
Companies mentioned in this episode:
- Around the House
- Mayo Clinic
- Tillamook
- Snow Peak
- Dr. Power Equipment
- Decathlon
- Van Rysel
- REI
- Ford
Thanks for listening to Around the house if you want to hear more please subscribe so you get notified of the latest episode as it posts at https://around-the-house-with-e.captivate.fm/listen
If you want to join the Around the House Insider for access to the back catalog, Exclusive Content and a direct email to Eric G and access to the show early https://around-the-house-with-e.captivate.fm/support
We love comments and we would love reviews on how this information has helped you on your house! Thanks for listening! For more information about the show head to https://aroundthehouseonline.com/
Information given on the Around the House Show should not be considered construction or design advice for your specific project, nor is it intended to replace consulting at your home or jobsite by a building professional. The views and opinions expressed by those interviewed on the podcast are those of the guests and do not necessarily reflect the views and opinions of the Around the House Show.
