Homebuilder Toll Brothers reports uptick in sales incentives
One of the country’s top homebuilders, Toll Brothers, told Wall Street analysts on Wednesday that it continued to offer sale incentives to coax buyers to purchase in the quarter ended July 31 but noted a 15% increase in foot traffic and a more modest uptick in web traffic from prospective buyers.
Nationally, 66% of homebuilders report offering sales incentives in August, according to this month’s Housing Market Index from the National Association of Home Builders and Wells Fargo.
Toll Brothers CEO Doug Yearly said sales incentives averaged 8% of the total closing cost of a home in the company's third quarter, up 1% from the second quarter’s 7%. That would be a cost savings of about $76,400. Incentives include mortgage rate buydowns or free upgrades.
The company hopes to find savings in the fourth quarter. Yearley said the builder had seen little impact from tariffs, nor would it in this fiscal year, and anticipates construction costs to decline modestly in the “foreseeable future” as more subcontractors and suppliers have negotiated contracts with lower prices.
Fed governor accused of mortgage fraud
President Donald Trump is calling on another Federal Reserve governor to resign, turning up the heat on the agency.
Federal Reserve Governor Lisa Cook faces allegations of committing mortgage fraud, according to Bill Pulte, director of the Federal Housing Finance Agency, who blasted the policymaker in a series of posts on his social media account on X on Wednesday.
Pulte cited paperwork dating back to 2021, where Cook allegedly claimed two homes — one in Michigan and another in Atlanta — were her primary residences when applying for mortgages, potentially receiving lower rates given to people who occupy their homes full-time. Pulte said he had referred the matter to the Justice Department.
Both Pulte and Trump have pressured various Federal Reserve leaders to resign, including the agency's top leader Jerome Powell. The demands have come as the administration has been clamoring for a cut in interest rates.
Mortgage applications dip
Mortgage applications fell 1.4 percent from last week as interest rates ticked up, according to the latest weekly report by the Mortgage Bankers Association.
Refinancing activity decreased to 46.1 percent of total applications from 46.5 percent the previous week, the group said. The adjustable-rate mortgage share of activity also decreased to 8.6 percent of total applications.
"Purchase applications were little changed over the week," said Joel Kan, the MBA’s deputy chief economist, in a statement. "Prospective homebuyers remain more active compared to last year despite economic headwinds and uncertainty and affordability challenges.”
Real estate agents see brighter days ahead
Real estate agents see brighter housing conditions these days compared to recent months, offering a silver lining amid concerns over steady interest rates and tight supply.
About 67% of real estate agents feel optimistic about housing activity in their market, the best reading in four months, according to a monthly survey by the Real Brokerage Inc.
The agency tapped 550 real estate agents in the United States and Canada between late July and early August. The sentiment improved from last month's survey, when about 60% of respondents said they felt optimistic.
