“We track temporary buydowns, which are quite common offerings by builders and other lenders that offer construction financing,” Martin told Mortgage Professional America. “To this point, we have seen the percentage occurrence of temporary buydowns increase. With particularly government products, FHA primarily, reaching their highest levels in April 2025 since February 2024.”
Martin is hopeful that if these numbers continue to increase, that could allow the home construction numbers to increase throughout the summer, even as rates are forecasted to remain elevated.
“This could be one encouraging sign for the market if we continue to see temporary buydowns increase,” he said. “Since they serve as an offset to elevated interest rates and inflated construction costs.”
Western states with most buydowns
According to the latest numbers from Curinos, a high percentage of the overall buydowns are occurring out west. The state of Arizona has the highest percentage of buydowns by state at 13.7% of the national total. Colorado (12%), California (10.8%), Texas (7.5%) and Washington (7.2%) round out the top five.
When considering the temporary buydown share of the total production by state, Arizona tops the list at 18.3%. Colorado is second at 15.3%. Utah (10.9%), Nevada (10.3%) and Mississippi (7.7%) complete the top five.
