If you've been putting off buying a home because of mortgage rates, there's an opportunity you might be overlooking: new construction.

When most people think about buying a brand-new home, they assume it's going to cost more than purchasing an existing property. And while that can certainly be true, something interesting is happening in the housing market right now. Some of the biggest homebuilders are offering incentives that could make buying a new home more affordable than buyers realize.

The reason is pretty simple. Builders have homes they need to sell, and an empty, completed home isn't making them any money.

Why Builders Are Motivated to Make Deals

Unlike individual homeowners, large homebuilders are operating a business with construction schedules, inventory, financing costs, and sales goals. When a home is finished and ready for someone to move in, the builder generally wants to get it sold as quickly as possible.

Every month that property sits unsold means additional carrying costs. And when a builder has multiple completed homes sitting in the same community, those costs can add up.

That's where buyers may have an advantage. Rather than letting completed homes sit empty, some builders are willing to negotiate on price or offer financial incentives to get a deal done. And depending on the builder, the community, and the specific home, those incentives can be substantial.

What Kind of Deals Are Builders Offering?

We're seeing several types of incentives in the new construction market, and some can make a meaningful difference in what a buyer pays upfront or over the life of their mortgage.

Price Reductions: Builders may reduce the asking price on completed homes, particularly when they have several properties available or want to close out a phase of a development.

Mortgage Rate Buydowns: This is one of the more interesting opportunities. Some builders are offering to pay upfront costs to secure a lower mortgage interest rate for buyers. Depending on the program, that lower rate might be permanent or temporary. Either way, it's worth exploring because the difference in monthly payments can be significant.

Closing Cost Assistance: Buyers may be able to negotiate thousands of dollars toward closing costs, reducing the amount of cash they need to bring to the table.

Upgrades and Other Incentives: Builders may also offer appliance packages, upgraded finishes, or other extras that would ordinarily cost buyers additional money.

Not every builder is offering all of these incentives, and the best deals often apply to specific homes rather than an entire community. But that's exactly why it's worth doing some homework before ruling out new construction.

The Best Opportunities May Be Homes That Are Already Finished

Here's something buyers should pay particular attention to: quick move-in homes.

These are homes that have already been built, or are nearly finished, and don't have a buyer lined up. Builders often have more flexibility with these properties than they do with homes that haven't been started yet. They've already invested the money into construction, and they're ready to move on to the next sale.

That doesn't mean every completed home is a bargain. But if you're flexible about the floor plan, finishes, or exact lot, you may find an opportunity that wouldn't exist if you were building from scratch.

It's also worth paying attention to builders approaching the end of a sales period or trying to finish selling the remaining homes in a community. Those situations can sometimes create additional negotiating opportunities.

A Lower Interest Rate Isn't Always the Best Deal

One thing I always tell buyers is to look beyond the advertised incentive.

A builder might advertise an attractive mortgage rate, but you need to understand exactly what you're getting. Is that rate fixed for the life of the loan, or does it increase after the first year or two? Are you required to use the builder's preferred lender? Is the home priced competitively compared to similar properties?

A lower interest rate can be a tremendous benefit, but it needs to make sense when you look at the entire transaction. The same goes for closing cost assistance and upgrades. A $15,000 incentive sounds great, but you still need to know whether you're paying a fair price for the home in the first place. That's where having an experienced real estate agent on your side becomes especially important.

Don't Walk Into a Builder's Sales Office Without Representation

One of the biggest misconceptions about buying new construction is that you don't need a real estate agent because the builder already has someone handling sales. What buyers need to understand is that the person working in the builder's sales office represents the builder's interests, not yours.

Having your own agent means having someone who can help evaluate the pricing, compare incentives, negotiate terms, review important contract details, and identify potential issues before you commit. And in many cases, builders already account for real estate agent compensation in their sales structure, although the terms vary.

It's also important to involve your agent before your first visit to a new construction community. Some builders have registration requirements that can affect whether your agent is able to represent you in the transaction.

Don't Let Mortgage Rates Keep You From Exploring Your Options

I understand why buyers are frustrated with interest rates. The cost of borrowing money has changed significantly over the past several years, and affordability remains a real concern. But that doesn't mean every opportunity in today's market is a bad one.

Sometimes the best deal isn't the home with the lowest advertised price. It might be a brand-new home where the builder is willing to reduce the price, contribute toward closing costs, or help secure a more affordable mortgage payment. The key is knowing where to look, understanding what you're being offered, and making sure the numbers work for your situation.

If you're thinking about buying a home in Maryland, Pennsylvania, Virginia, or West Virginia, don't overlook new construction. Our team can help you explore available properties, compare builder incentives, and determine whether one of these opportunities makes sense for you.

The deals are out there. You just need to know where to find them.

One of the biggest challenges homeowners face when they're ready to move isn't necessarily finding their next house. It's figuring out what to do with the one they already own.

Maybe you've outgrown your current home, want to move to a different school district, or simply found a property that better fits your needs. But there's one thing holding you back: you have a great mortgage rate on your current house, and the thought of giving it up doesn't sit right.

What if you could keep that house, turn it into a rental property, and still qualify to purchase your next home? Thanks to updated guidance from Fannie Mae, that possibility may be more realistic for some homeowners.

What's Changed?

Traditionally, homeowners who wanted to convert their primary residence into a rental property while purchasing another home faced a financing challenge.

Even if their current property could easily generate enough rental income to cover the mortgage, lenders couldn't necessarily count that potential income when determining whether the homeowner qualified for another loan. Depending on the loan program and lender requirements, borrowers often needed an executed lease before rental income could be considered.

That created a frustrating situation. You might have a perfectly rentable home in a desirable neighborhood, but without a tenant already lined up, the numbers might not work on paper.

Fannie Mae's updated guidance gives lenders another option. Under certain circumstances, lenders can use documented market rent to evaluate a departing residence being converted into a rental, even without an existing tenant or signed lease agreement. In other words, you may be able to qualify for your next home based partly on what your current home could reasonably rent for, rather than having to secure a tenant before you move.

How Does This Actually Work?

Let's say you own a home in Frederick with a monthly mortgage payment of $2,000, including taxes and insurance. You've been there for several years, built up some equity, and locked in a mortgage rate that's considerably lower than what you'd find today.

Now you're ready for something bigger, but you don't necessarily want to sell. You speak with a lender about purchasing your next home while converting your existing property into a rental.

Let's assume a qualifying rental appraisal determines that your current home could rent for $2,800 per month. For this type of calculation, Fannie Mae generally allows lenders to consider 75% of the documented market rent to account for expenses such as vacancy and maintenance.

That would give you $2,100 in qualifying rental income. With a $2,000 monthly housing payment, that projected rental income could potentially offset the payment on your existing home when the lender evaluates your debt-to-income ratio. That's a big deal because carrying two mortgage payments on paper can make qualifying for your next home difficult, even when you have a solid income and substantial equity.

There are limits on how that rental income can be used, particularly if you don't have an established history of managing rental properties. But the ability to potentially offset your existing mortgage payment could open a door that previously seemed closed.

Does This Mean Anyone Can Keep Their House and Buy Another?

Not quite. And this is where it's important to understand the details before making plans. You'll still need to qualify for the new mortgage, meet applicable credit and financial requirements, and have enough money available for your down payment, closing costs, and any required reserves.

Lenders will also need acceptable documentation supporting the estimated rental income. Simply telling your lender that your home could rent for $3,000 a month isn't enough. Depending on your financial situation and rental property experience, there may also be restrictions on how much of that projected income can be used.

And remember, qualifying for two properties doesn't automatically mean owning two properties is the best financial decision. Rental homes come with expenses, maintenance, vacancies, and the responsibilities of being a landlord. The numbers still need to make sense.

Why This Could Be Especially Interesting Right Now

I've talked with plenty of homeowners who would love to move but feel trapped by their existing mortgage rate. They purchased or refinanced when rates were historically low, and now the idea of trading that mortgage for a significantly higher rate is difficult to justify.

But here's something worth considering: moving doesn't necessarily have to mean giving up that mortgage. If your current home would make a good rental property, keeping it could allow you to hold onto your existing financing, continue building equity, and potentially benefit from future appreciation while moving into a home that better meets your needs.

Of course, there's no guarantee that property values will rise or that rental income will cover every expense. But for the right homeowner, this could be an opportunity to turn a property they already own into a long-term investment. And in markets like Frederick and the surrounding communities, where some homeowners have accumulated substantial equity over the past several years, it's a conversation worth having.

Before You Put Your House on the Market, Consider Your Options

Selling your current home might still be the right decision. For many homeowners, using the equity from their existing property toward their next purchase makes the most financial sense. But it shouldn't automatically be the only option you consider.

If you've been thinking about moving but aren't thrilled about giving up your current home, I'd encourage you to have a conversation with both an experienced real estate agent and a knowledgeable mortgage lender before making a decision. Find out what your home could realistically rent for, what it might sell for in today's market, and how those two scenarios would affect your next purchase.

You may discover that selling is still your best move. Or you might find that keeping your current home is more achievable than you thought. Either way, it's better to understand your options before making one of the biggest financial decisions of your life.

Thinking about buying your next home without selling your current one? Let's talk about what your home could sell or rent for and help you figure out which direction makes the most sense for you.

The housing market is shifting again, and there’s a lot happening as we head into the final stretch of 2026.

Mortgage rates have taken a bad turn, affordability continues to be a challenge, and homes aren’t selling quite the way they did a few years ago. At the same time, people are still buying, homes are still selling, and there are opportunities in this market for people who understand what’s actually happening.

Here are a few of the biggest things I’m watching right now.

Mortgage Rates Are Moving in the Wrong Direction

For a while, a lot of buyers were operating under the assumption that they could simply wait for mortgage rates to come down. That strategy is looking a little less certain.

Rates have moved higher again, and the possibility of borrowing costs climbing even further is very real. After several years of rate volatility, there’s still no clear indication that buyers can count on significantly lower rates anytime soon.

That doesn’t mean everyone needs to rush out and buy a house. But if your entire plan has been based on waiting for a much lower mortgage rate, it may be worth taking another look at the numbers.

There’s no guarantee that rates will move in the direction we want them to, or that home prices will cooperate if they do.

Is Buying Now a Mistake?

This is probably one of the biggest questions buyers are asking us right now.

Interestingly, a recent study looking at more than two decades of housing data found that buying now beat waiting two years 61% of the time. That doesn’t mean buying today is automatically the right decision for everyone. Your finances, how long you plan to stay in the home, the payment you’re comfortable with, and what’s happening in your local market all matter.

But it does challenge the idea that waiting is always the safer financial decision. Interest rates are only one part of the equation. While you wait for a better rate, home prices can change, inventory can change, competition can increase, and you’re also giving up time you could have spent building equity.

The better question usually isn’t, “Should I wait for rates to drop?” It’s, “Does buying make sense for me at today’s numbers?” Those are two very different questions.

Sellers Have to Work Harder, Too

The shift isn’t just affecting buyers. There was a period when putting a home on the market almost guaranteed attention. In some areas and price ranges, sellers could get away with aggressive pricing, limited showing availability, or a home that wasn't completely ready for the market.

That’s not the environment we’re in today. We’re seeing some homes sit while others continue to sell quickly. The difference often comes down to the fundamentals: price, condition, presentation, showing access, marketing exposure and, in some cases, seller concessions. Buyers have more choices than they did during the most competitive years of the market, and higher monthly payments have made them more selective about those choices.

That doesn’t mean it’s a bad time to sell. It means the strategy matters more. A well-prepared home that is positioned correctly for the current market can still attract plenty of attention. But sellers have to understand what they’re competing against and give buyers a compelling reason to choose their home.

The Affordability Problem Nobody Talks About Enough

Mortgage rates and home prices get most of the attention when we talk about affordability, but there’s another expense becoming increasingly important: homeowners insurance. Premiums have risen dramatically in recent years, and that increase gets added directly to the monthly cost of owning a home.

For buyers, that means the price of the house and the mortgage rate don't tell the entire story. Taxes, insurance, HOA fees and maintenance all affect what a home really costs each month.

For existing homeowners, rising insurance premiums can also mean a noticeable increase in a mortgage payment even when the mortgage itself hasn't changed. It’s another reason we encourage buyers to look at the complete financial picture rather than focusing on one number.

So, What Should You Do?

There isn't one answer that works for everyone in this market. For some buyers, moving now may make sense even with higher rates. Others may be better off waiting. Some homeowners may be surprised by how much demand there is for their home, while others may need to adjust their expectations based on current competition.

What I wouldn't recommend is making a decision based entirely on a headline about mortgage rates or housing prices. Real estate is local, and your individual situation matters.

If you're thinking about buying, selling, or you're simply curious about what your home is worth in today's market, give us a call. We can look at the actual numbers and help you figure out what makes sense for you.

— Rob

There’s a housing proposal working its way through Congress that hasn’t gotten nearly as much attention as mortgage rates or home prices, but it could have a real impact on homeowners, especially those who have owned their homes for a long time.

It’s called the More Homes on the Market Act, and the idea behind it is pretty simple: update a capital gains tax rule that hasn’t changed since 1997.

The $500,000 Exclusion Isn't What It Used to Be

Under current federal law, when you sell your primary residence, you can generally exclude up to $250,000 of your gain from federal capital gains taxes if you’re single, or up to $500,000 if you’re married filing jointly, assuming you meet the requirements for the exclusion.

Those numbers probably sound fairly generous until you realize they were established nearly 30 years ago.

Think about how much home values have changed since 1997, particularly in markets like Maryland and Northern Virginia. Someone who bought a home decades ago for $200,000 or $250,000 could easily be sitting on a property worth several times that amount today.

That appreciation is obviously a good thing. Homeownership has helped that person build substantial equity. But when it comes time to sell, some longtime homeowners are discovering that a portion of that gain may extend beyond the current exclusion.

And that can affect the decision to move.

What Congress Is Considering

The bipartisan More Homes on the Market Act would double the current capital gains exclusions to $500,000 for individuals and $1 million for married couples filing jointly. The legislation would also provide for inflation adjustments going forward, rather than allowing the thresholds to remain frozen for another few decades.

This isn't a small issue affecting only a handful of extremely expensive homes.

The National Association of Realtors estimates that roughly 13.1 million homeowners, about 15% of owner-occupied households, could exceed the current capital gains exclusion if they sold their primary residence.

That's where this becomes more than a tax story. It becomes a housing inventory story.

Why This Could Put More Homes on the Market

Imagine someone who bought their home 25 or 30 years ago. The kids are grown, they don't need as much space anymore, and they'd actually prefer to downsize.

Financially, though, selling may not be as simple as it sounds. Their home has appreciated significantly, and depending on their individual circumstances, selling could result in a substantial taxable gain.

So maybe they wait.

From that homeowner's perspective, that decision may make perfect sense. But multiply it across millions of homeowners and you start to see the effect on the housing market.

One longtime homeowner decides not to sell, which means one fewer home available for the family looking to move up. That family stays in its current home, which means that home doesn't become available to another buyer. Housing inventory depends on people being able to move through different stages of homeownership.

Building more homes is obviously an important part of addressing housing supply. But sometimes increasing inventory also means removing obstacles that keep existing homes from coming onto the market.

This Hasn't Passed Yet

The important thing to understand is that this is still proposed legislation. Homeowners shouldn't make a financial or real estate decision today assuming these new exclusions will become law. But it is worth watching.

The More Homes on the Market Act has bipartisan support, and the National Association of Realtors has been actively advocating for the change. If enacted, it would represent the first major update to these exclusion limits in nearly three decades. For longtime homeowners who have accumulated significant equity, that could make a meaningful difference when deciding whether to sell.

And for everyone else trying to buy a home, it could matter too. Anything that removes a legitimate barrier keeping homeowners from selling has the potential to bring additional inventory onto the market.

If you've owned your home for a long time and you're considering selling, it's worth understanding how much your property has appreciated and what that could mean for you. The tax side is a conversation to have with a qualified tax professional, but knowing what your home is worth today is a good place to start.