The in-house lenders of major U.S. homebuilders are buying down mortgage rates like they're in a frenzy. It's become their go-to strategy to move new homes.
For example, America's largest homebuilder, D.R. Horton, offers rates a whopping 150 bps below the market. Smaller homebuilders with less assets and liquidity are like a mom-and-pop shop trying to price match with Walmart—they can't compete.
U.S. mortgage brokers and regular lenders can't compete either.
This isn't happening nearly as much in Canada. Take Mattamy, for example, North America's largest privately owned homebuilder. Its Canadian website features no mortgage discounts. Neither do the websites for a sampling of other top Canadian homebuilders we checked.