Now Available: The 15/6 ARM Loan Program by Fifth Third Bank: If you’re tiring of rising interest rates, this could be the loan program for you! Once you’ve qualified for the loan, you gain a locked-in interest rate that is currently 1 – 1.5% lower than today’s 30-year fixed interest rate. This is accomplished through the 30-year amortization, with the rate fixed for the first 15 years.
Interested in learning more? Get in touch with our Online Sales Team here.
Current Build Time: Our current build time is 10 – 12 months from point of sale to complete. This longer build time is due to a nationally felt shortage of materials, construction workers, and an influx of people wanting to build.
Starting Prices: To see the starting prices by community, please click here. Please know we are experiencing a fluctuating cost environment due to the costs of materials nationally. Our prices change regularly and without notice.
Open Houses: Come visit us in our model homes to get a personalized tour and information on building or buying with Eastbrook Homes. For information on Open House dates and times, please visit our Move In Homes page or the Community Page that you’re most interested in. We look forward to seeing you there!
Holiday Schedule: Please note that our Sales team will be available by appointment only during the following Holiday Weekends:
- Mother’s Day: Sunday, May 8th
- Memorial Day: Sunday, May 29th and Monday, May 30th
- Father’s Day: Sunday, June 19th
- Independence Day: Sunday, July 3rd and Monday, July 4th
- Labor Day: Sunday, September 4th & Monday, September 5th
- Thanksgiving: Thursday, November 24th
- Christmas: Saturday, December 24th & Sunday, December 25th
- New Year’s Day: Saturday, December 31st & Sunday, January 1st
Please continue to check back!
Lender 2022 Forecast
One of our Preferred Lenders, LMCU, provided this helpful forecast:
The MBA’s seasonally-adjusted index of mortgage applications for home purchases slid 3%. And the unadjusted index dropped 9% from a year ago.
“Mortgage application volume continues to decline due to rapidly rising mortgage rates, as financial markets expect significantly tighter monetary policy in the coming months,” Joel Kan, an economist at the MBA, said in a statement.
As for mortgage rates, the 30-year fixed rate rose for the fourth consecutive week last week to 4.90%, up more than 1.5 percentage points from a year earlier, according to the MBA. High inflation is helping to push rates higher, with consumer prices soaring 7.9% in the 12 months through February, a 40-year high.
As for monetary policy, the Federal Reserve began raising interest rates with a 25-basis point hike last month to quell that inflation. And many economists and investors anticipate a 50-basis point increase next month.
“The hot job market and rapid wage growth continue to support housing demand, despite the surge in rates and swift home-price appreciation,” Kan said. “However, insufficient for-sale inventory is restraining purchase activity.” Homebuilders are hard at work trying to build new houses to meet demand but still struggle with supply chain problems.
Rates and the Market
If mortgage rates continue on their current trajectory, some experts predict 30-year fixed rates could hit 5% within the next month or so. But others say the timeline is a little longer. Whenever rates hit this benchmark, one thing is clear: Though a 5% mortgage rate is still considered historically low, it would signify the highest level for rates in about the last decade. “While rates got very close, reaching as high as 4.94% in November 2018, they did not reach 5%, according to data from Freddie Mac,” says Danielle Hale, chief economist at Realtor.com. (See the lowest mortgage rates you might qualify for here.)
Hale thinks we’re close to hitting 5%: “Even if rates slow their recent pace of increase, they’re likely to hit 5% by mid-year unless something big changes in the outlook,” she says. And Jeff Ostrowski, analyst at Bankrate, thinks it could happen even sooner. He notes that rates have been climbing sharply and hit 4.59% in Bankrate’s latest weekly survey of lenders. “It’s quite possible that the upward trend will continue and that the rate will hit 5% sometime this spring,” he says.
How will a 5% mortgage rate affect the housing market?
Pros expect that higher mortgage rates will cool the housing boom somewhat. “At a 5% rate, home sales this year may even fall by 10%,” says Dr. Lawrence Yun, chief economist at the National Association of Realtors (NAR). And Ostrowski predicts that: “An average rate of 5% would squeeze affordability and dampen demand. However, there’s still a severe shortage of homes for sale and that lack of supply is a more important driver of home prices than mortgage rates.”
Indeed, as a result of the combination of higher prices and higher rates, the monthly mortgage payment on the typical listing is already up $375 from one year ago, says Hale. “That amounts to an extra cost of $4,500 per year to purchase the median-priced listing and means that these monthly payments are 30% higher than this time last year,” says Hale.
Given these higher costs, Jeff Tucker, Zillow senior economist, says a 5% mortgage rate would bring sticker shock to buyers who have gotten used to the record-low rate environment of the last few years. “For most buyers though, what matters most is whether they can afford and qualify for the ultimate monthly payment and we have not yet seen that affordability constraint tested in a meaningful way. The other prime consideration for first-time buyers is how their mortgage payment compares to the cost of renting, which has also risen sharply in the last year,” says Tucker.
That said, Hale doesn’t expect to see demand evaporate. “We have a large generation of younger households, more than 45 million of whom are in prime household formation and home buying years of 26 to 35. And while the monthly costs of buying are higher, the monthly costs of renting are also up, more than 17% in the last year according to Realtor.com’s February rental report. Rising rents and higher costs of home buying have young households hoping to move, stuck between a rock and a hard place,” she says.
All things considered, Yun doesn’t think home prices will turn negative. “Home prices are on firmer ground, even if mortgage rates rise to 6% since the rents are rising strongly,” says Yun. Meanwhile, Tucker expects to see a gradual cooldown from today’s record price growth by later this year. “But for now, ultra-low inventory is continuing to keep the competition fierce among home shoppers, in spite of rising rates,” says Tucker.
Supply Chain & Pricing
As was expected, 2022 brings continued after-effects from Covid-19 on industries across the board. The housing industry and builders have been affected as much as anyone else, possibly more, given the number and wide variety of products that go into a new home.
We are seeing that supply chain disruptions, from manufacturing to distribution, continue to affect new home builders
With lumber prices rising once again, in addition to copper, steel, cement, and resin found in many products, new home prices have continued to increase.
We continue to see delays and shortages in all supplies and materials, but we’re working through all of it. In fact, we are making sure communication is one of our top priorities, so you are in the loop at every stage of your new home project.
The bottom line is, we’re working through all of the challenges and changes on our end, so you don’t have to. Through our Eastbrook Building Process and our relationships with local and national vendors, we do our very best to bring cost savings and timely milestones to your new home project.
The Eastbrook Experience
Price Lock: Lumber prices are at an all-time high and show no signs of dropping any time soon. However, all our new home buyers are protected by the Eastbrook Guarantee. With Eastbrook Homes, once a new home buyer decides to sign a non-contingent new home purchase agreement, they are protected from rising costs and expenses on their base home plan and home site. Additionally, once they have selected all of the features for their home, finalize their pricing and submit their deposit per the purchase agreement, the home price will not change.
No Construction Loan: Simply get Pre-Approved with one of our preferred lending partners and Eastbrook will carry the costs of your new construction until your home is complete, so you can save on interest payments and focus on the things that matter most, building your dream home.
Included Features: Eastbrook Homes is proud to offer you an array of quality Included Features, which means that your base price includes everything you need for a turn-key home. On top of that, we’re excited to offer Moen faucets, air conditioning, and Smart Home technology in your base price