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For mortgage professionals, the pressure on new construction means more conversations about builder incentives, rate buydowns and realistic borrower comparisons.
The housing starts outlook has turned negative through 2027, HousingWire reported on September 17, 2026, citing rising construction costs, tighter builder margins and persistent labor shortages. The report also says rate buydowns are now supporting 80% to 90% of new-home sales, a sign that incentives remain central to how builders are keeping buyers engaged.
For loan officers, this matters because new construction has been one of the more incentive-driven parts of the purchase market. If starts soften while builders keep leaning on buydowns, the borrower conversation becomes less about headline price alone and more about payment, concessions, timing, inventory and whether the incentive still works after underwriting and long-term affordability are considered.