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2019 Top Home Design Trends

For those wanting to keep up with 2019 top home design trends, McKee Homes has published a list of our eight most popular design studio selections and upgrades. These popular choices, recently made by homebuyers at our design studios, will also be of interest to anyone thinking of remodeling, upgrading or revamping their interior décor this year.

Painted cabinets

top home design trends - painted cabinetsHomebuyers are choosing painted cabinets over stained cabinets to make their kitchens look modern and unique. Light and neutral colors such as white and gray are popular but bold colors such as navy blue are becoming popular as well. These bold colors give kitchens a dramatic high-end luxurious look.

4×16 & Subway Backsplash Tiles

top home design trends - subway tilesCommon 3”x6” Subway tiles have been popular for years but we’re seeing larger Subway tiles and 4”x16” ceramic and glass tile backsplashes gaining ground in the last couple years. When combined with quartz countertops, the larger tiles give kitchens a clean look that’s also low maintenance.

Tile Herringbone Patterns

top home design trends -tile herringbone patternHerringbone pattern in tile is one of those trends that comes back around every so often. While popular over 50 years ago, it wasn’t seen much in new construction for many decades. In the last few years herringbone patters have come back in favor and add a unique modern look to tile on backsplashes and floors.

Quartz Countertops

top home design trends -quartz countertopsQuartz countertops continue to gain in popularity compared to granite. Like granite, quartz countertops are resistant to stains, moisture and bacteria but are lower maintenance because they are less porous and don’t need to be sealed. Quartz also comes in a wider variety of colors than granite and the colors are more uniform.

LED Lighting

top home design trends -LED lightingLED lighting is one of the latest trends for a number of reasons including lower cost, better energy efficiency and increased durability. LED undercounter lighting is very popular now because the lighting range is more controllable, it produces less heat and can last for thousands of hours. LED Smart light bulbs cost more than other LED bulbs but can be set up in zones so lighting in different areas of the home can be controlled by a mobile device such as a phone or tablet or a voice-activated system.

12×24 Tile in Wet Areas

top home design trends -12" x 24" floor tilesOne of the easiest ways to showcase a bathroom is to add 12” x 24” tile flooring. This has become very popular lately as it adds a high-end modern look to any room. Another positive aspect of larger tiles is fewer grout joints to clean.

Frameless Shower Doors

top home design trends -frameless shower doorsAnother popular trend in bathrooms is frameless shower doors. The absence of hard lines and frames adds an elegant open, seamless and contemporary style to any bathroom. Frameless shower doors also make a bathroom look larger than it really is, are easier to clean and are more durable with thicker glass.

Warm Gray Interior Walls

top home design trends - warm gray wall colorsWarm gray paint colors are currently the most popular. They are soft, stylish and neutral and work with almost any type of flooring and furniture. Warm tones are inviting with beige, brown and taupe undertones as opposed to cool grays which have more blue undertones.

Conclusion

Home design trends can be difficult to keep up with. Hopefully this article showcasing the 2019 top home design trends from the McKee Homes Design Studios will help homebuyers and homeowners looking for the latest design trends for their homes. For more info, contact us at 910-692-7296 or visit our McKee Homes Design Studio webpage.

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New Construction Buyer Incentives

McKee Homes new construction homebuyer incentives have saved our homebuyers thousands of dollars on the purchase of new homes over the years. And since the word is out, and savvy home shoppers are asking about our current buyer incentives, we have a web page dedicated to McKee Homes buyer incentives.

This makes it easy for home shoppers to easily check on our current buyer incentives and find out when each incentive program starts, and how long it lasts, so they don’t miss out on incredible savings on a new home.

Every incentive is unique as far as total amount allowed, what it can be applied toward and when it expires. However, McKee Homes new construction homebuyer incentives are not frivolous giveaways or vacations. They are meant to help home buyers save money on the home of their dreams and usually include thousands of dollars to use-as-you-choose when purchasing one of our quick move-in homes.

Previous use-as-you-choose incentives included some, or all, of the items listed below:

  • Price Reduction
  • Closing Costs
  • Appliance Package
  • Design Studio Upgrade Discount
  • Screened Porch
  • Fence Allowance
  • HOA Dues

There are a few conditions to most incentives, such as money applied toward closing costs, which requires using one of our preferred lenders. Our preferred lenders help our home buyers get great rates and insure that the loan process moves forward without delays.

Most buyer incentives apply only to quick move-in homes and contracts must be signed before the incentive expires, usually at the end of the quarter.

If you are considering buying a new home, give us a call at 910-672-7296 to make an appointment to visit one of our new home neighborhoods to see how much you can save.

Our new construction homebuyer incentives change quite often, so bookmark the McKee Homes current incentives page to see how easy it is to turn your Dream Home into a Reality!

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Moore County NC New Homes & Communities

McKee Homes has been building new single-family homes in Moore County, NC for almost a decade. Our Moore County NC new homes and communities are located in Pinehurst, Southern Pines, Aberdeen, Whispering Pines, Carthage and Cameron. View Moore County communities map

Foxcroft
Foxcroft Road at Michael Rd, Carthage, NC 28327
From the high $200s | 2,200-3,700 sq. ft.

Foxcroft, located in Whispering Pines, is just minutes from Southern Pines and incredible shopping and dining in the Village of Pinehurst. Foxcroft features our European elevation floor plans with beautiful, large home sites backing up to wooded areas. It is also in the much sought-after Farm Life School District. Visit soon as there are only a few opportunities left in this desirable neighborhood!

Legacy Lakes
155 Legacy Lakes Way, Aberdeen, NC 28315
From the mid $200’s | 1,300-3,600 sq. ft.

Just minutes from Pinehurst, Southern Pines and Fort Bragg, Legacy Lakes is home to over 400 acres of beautiful pine trees, rolling fairways, natural lakes and country club amenities. Just minutes from the Village of Pinehurst, and Pinehurst #2 known as one of the best golf courses in the country.

In addition to the main Legacy Lakes neighborhood, there is a special area called the Preserve at Legacy Lakes which offers single-story cottages with optional second floor guest suites. These homes have wide interior doorways and minimal steps from the outside making them perfect for indoor and outdoor entertaining.

Meadows at Farmlife
Farmhouse Lane, Carthage, NC 28327
From the high $200’s | 2,225-3,972 sq. ft.

Meadows at Farm Life is a beautiful new home community close to the Village of Whispering Pines and the Town of Carthage, NC, the county seat for Moore County. It’s less than two miles from the highly acclaimed Sandhills Farm Life Elementary School. The surrounding area is the best of both worlds with grassy meadows and quiet neighborhoods yet only minutes away from shopping, grocery stores, libraries, medical facilities, golf courses, banks, and the central post office. Visit soon as there are only a few opportunities left in this desirable neighborhood!

Mid South Club
104 Plantation Dr, Southern Pines, NC 28387
From the low $300’s | 2,225-3,836 sq. ft.

The private, gated community of Mid South Club in Southern Pines, NC, near Pinehurst, is an upscale community that addresses the wants and needs of those looking for all the amenities of country club living. There is a newly remodeled clubhouse, pool, tennis courts, driving range, and golf course. Each home features a designer kitchen with tiered cabinets and crown molding, granite countertops, and stainless steel appliances. Mid South Club is one of the best golf community real estate opportunities in the area.

The combination of beautiful new home construction and homesites with incredible views of the golf course and lakes makes these Moore County NC new homes some of the best real estate opportunities in the area.

Sandy Springs
195 Sandy Springs Rd, Aberdeen, NC 28315
From the mid $200’s | 1900-3350 sq. ft.

Sandy Springs is located approximately 10 miles from Pinehurst, close to Downtown Aberdeen and the Town of Southern Pines with all the area has to offer. Just minutes from The Academy of Moore School, Aberdeen Primary, Aberdeen Elementary and Southern Middle School. Sandy Springs is a family friendly community featuring a children’s park in the neighborhood and close to shopping, grocery stores, libraries, medical facilities, golf courses, banks, and the central post office.

Sinclair
Turriff Way, Cameron, NC 28326
From the low $200’s | 2,018-3,650 sq. ft.

Sinclair has over 200 acres of beautiful countryside. Most homes will have a view of permanent green space, making this community a must see for relaxing family living. Just 15 minutes from Fort Bragg at the Manchester Gate on McPherson Road east of Woodlake. It’s also a short drive to quaint shops, restaurants, and world class golfing at Pinehurst and Southern Pines. Moore Memorial Hospital is only minutes away.

Villas at Forest Hills
Winged Foot Rd, Pinehurst, NC 28374
From the high $200’s | 1,950-2,900 sq. ft.

The Villas at Forest Hills townhomes are the ultimate “lock and leave” lifestyle townhomes right in the heart of Pinehurst. This beautiful new construction townhome community is nestled in the tall long leaf pines in the heart of the Sandhills region of NC, Pinehurst “Home of American Golf”.

Conveniently located just minutes from Pinehurst Resort, The Village of Pinehurst, The Country Club of North Carolina, Southern Pines and Aberdeen. Villas at Forest Hills is walking distance to the Pinehurst No 7 clubhouse and Ft. Bragg is just a short commute away. The HOA takes care of lawn and exterior maintenance so you can relax and enjoy the beautiful surroundings.

More Info

For more information about our Moore County NC new homes and communities, give us a call at 910-672-7296. We offer new homes in Moore County starting in the low $200’s with personalization options and upgrades for all buyers. We also offer townhomes in Pinehurst as well as new single-family  homes in golf communities like Mid South Club in Southern Pines and Legacy Lakes in Aberdeen with all the amenities of country club living.

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Benefits of a Shower with Separate Bathtub

The master bath is a major selling point for a home. After all, the master bath is a room that is likely to be used every day. It’s used in the morning to get ready for work, to clean up after a trip to the gym, to have relaxing soak after a hard day, and so much more. Because this room is used so often,  new home buyers will want to make sure the master bath suits their unique lifestyle and needs.

New home owners have many varying preferences when it comes to priorities for master bath suites. Some prefer an invigorating shower complete with multiple shower heads, a bench, and room to move. Others may prefer a large tub which can be filled with hot water and bubbles and allow for reclining to soak away stress.

In some master suites, showers and tubs are combined into one unit. In these units, one takes a shower while standing in the bath tub. This is quite functional, but certainly doesn’t convey a feeling of luxury. McKee Homes offers luxurious master bath suites that include a shower with a separate bathtub, or simply just a shower. So what is the right choice?

Benefits of a Single Shower

Having a separate tub and shower in the master bath of a new home might not suit some lifestyles. Not everyone wants or needs a bathtub in the master suite. To suit these lifestyles McKee Homes offers floorplans that do not include a tub in the master suite, which allows for more space and eliminates the need to clean a tub.

Master Bath Suite

Master bath suite, with bathtub and shower with bench seating. Floor Plan Pictured: Clark European.

New home buyers with limited mobility may prefer a step-in shower, which is easier to access. A tub has high sides which will require a user to lift and bend the knee, but a step-in shower has a low lip that requires only a small amount of movement. Additionally, some McKee floor plans allow new home buyers to upgrade the shower to include bench seating – an upgrade that is not possible in a shower tub combo.

McKee Homes floorplans which offer a master bath suite with no tub that also include a linen closet and an enclosed toilet area.

Benefits of a Separate Bathtub

With a shower having so many attractive qualities it’s easy to forget about the tub. However, a tub is perfect for new home buyers who enjoying a relaxing soak, and is great for large or growing

Bath Tub with Picture window

Bath Tub with Picture window, allowing for ample natural light.

families. Little ones can enjoy playing in a larger than average tub, and fur babies can also enjoy a bath.

Additionally, when a tub and shower are combined, a shower curtain or glass door must be installed. Shower curtains collect moisture and can mildew, making it more difficult to keep a tub clean. If the shower is separate, this is not an issue.

When you slide into the tub after a hard day’s work, you’ll know the tub is as clean as possible. Many McKee Homes floor plans also include a picture window above the tub, which allows for ample natural light during the day and star gazing from the comfort of your bath in the evening.

McKee Homes floorplans offer a separate bath and shower in the master suite, along with an enclosed toilet area, include:

For more information about McKee Homes floorplans and master bath options and upgrades, please view our downloadable floorplan PDF files or give us a call at 910-672-7296.

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2019 Mortgage Interest Rates Decrease

2019 mortgage interest rates decrease to their lowest point in nine months. Both 15- and 30-year mortgage loan rates are down, which could increase activity in the U.S. housing market.

Mortgage Rate News

According to mortgage-finance company Freddie Mac, “The combination of improving affordability and more inventory than the last few spring selling seasons should lead to improved home sales demand.” The average rate for a 30-year fixed mortgage has fallen to 4.28% as of March 21, 2019. This is down from 4.41% on March 7 and significantly lower than the 4.94% seen in November 2018.

Mortgage applications have gone up slightly, according to the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. “Lower mortgage rates and cooling home-price growth in early 2019 have been positive developments for home buyers who delayed their search because of cost constraints,” said Bob Broeksmit, MBA president and CEO.

The mortgage interest rates decrease over the last few months may help homebuyers who were on the fence decide to move ahead with securing a mortgage on a new home.

Federal Reserve officials updated their economic projections, trimming the number of increases they foresee in 2019 from two to zero. Meaning there should be no more rate hikes in 2019.

“The reason we’re on hold is that we think our policy is in a good place, and the economy’s in a good place, and we’re watching carefully,” said Fed Chairman Jerome Powell. “It’s a great time for us to be patient and watch and wait and see how things evolve.”

Danielle Hale, chief economist at Realtor.com, said “Mortgage rates changed very little over the last week and remain below where they were one year ago.”

Mortgage applications increased 5.3% over the last week, the refinance index rose 5% from the previous week and the purchase index grew 6%.

All these indicators, especially the recent mortgage interest rates decrease, mean that homebuyers who are looking to lock in a low mortgage rate can move forward with confidence as we move into the peak home-buying season of 2019.

McKee Homes

McKee Homes is doing our part to help homebuyers save money on a new home by offering buyer incentives that include up to $7,500 to use as you choose on the purchase of select homes. We also cover up to $5,000 in closing costs in select neighborhoods when using one of our preferred lenders.

“We’ve seen a continued momentum in our sales as buyers are taking advantage of lower rates and different lender financing programs. We have quick move-in homes available which has helped our buyers who feel an urgency. We have also experienced company record breaking sales in January and February. It’s great to go in to the Spring season with such enthusiasm and excitement for our homebuyers.” says McKee Homes Director of Sales and Marketing, Patty Sloan.

Now is a great time to take advantage of lower interest rates, incredible buyer incentives and low or no closing costs on a new home. To see a list of our preferred lenders and get pre-qualified for a home mortgage, visit our New Home Financing web page or give us a call at 910-672-7296.

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3D Interactive Video Tours

McKee Homes has 3D interactive video tours for home shoppers that want to virtually walk through our floorplans without leaving the comfort of their current home or office.

This is especially useful for homebuyers that want to buy a presale home, which is a home that hasn’t been built yet. This allows the homebuyer to choose structural options and make many other materials and color choices for their new home.

If we don’t have a finished home built with the chosen floor plan, our 3D interactive video tours allow homebuyers to virtually walk through a similar home built using the same floor plan. It’s a great way to get a better idea of the details, rooms and flow of the home.

How It Works

Our 3D interactive tours allow you to move through the home, turn side-to-side, look up and down and even instantly jump to another level using your mouse or finger. You can click on “dollhouse” view to see the entire home in 3D. You can also spin it around to look at it from different angles and zoom in to any room in the house.

In addition to viewing the 3D interactive video tours on your computer or mobile device, you can also watch them using either Google Cardboard or Samsung Gear VR headsets with your mobile phone for a fully immersive experience.

Available 3D Videos

We’ve just added some new floor plans to our Coastal, Craftsman and Townhome Collections and have posted new 3D interactive video tours on our website to showcase these beautiful new designs.

The latest 3D interactive video tours include:

Coastal Collection: The Daniels, The Finley, The Nelson, The Sullivan and The Winston

Craftsman Collection: The Portico, The Torino and The Verona

Townhome Collection: The Augusta and The Muirfield

Take a stroll through our interactive video web page to view 3D interactive video tours of close to 40 floor plan elevations available.

Floorplan Download and Print Options

You can also download printable floor plan PDF files of any of our floor plans you are interested in by visiting our main Floor Plans page. Once you click into a floor plan group, you can select an elevation to get specific info for that floor plan elevation. There’s a Download Floor Plan button just below the Available Options information.

More Info

If you have questions about any of our floor plans, or where you can view a home that is built or under construction in one of our new home neighborhoods, give us a call at 910-672-7296 and one of our friendly online sales consultants will be happy to help you.

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New Construction In Raleigh NC

McKee Homes has been a Raleigh NC home builder since 2013. We were established in Fayetteville in 2010, but began new construction in Raleigh NC six years ago with Summerwind Plantation in Garner, just south of Raleigh. Since then, we have opened new home communities in Raleigh, Clayton, Knightdale, Wake Forest and Fuquay-Varina.

Copper Pond
2265 Copper Pond Way, Fuquay-Varina, NC 27526
From the mid $300s | 2225-3637 sq. ft.

Copper Pond is a beautiful new home community offering large-lot homesites in a quiet country setting just minutes from downtown Fuquay Varina. We have several floor plans on crawl spaces to choose from, some with Owners Suites on the first floor. Enjoy the town’s attractions, such as the Annual Balloon Festival, Fourth of July Fireworks Show, great restaurants and shops.

Evergreen at Flowers Plantation
100 Bramble Lane, Clayton, NC 27527
From the high $200’s | 1,780-3,000 sq. ft.

Evergreen at Flowers Plantation is a 55+ Active Adult Community in Clayton, NC, just 20 miles from downtown Raleigh. Evergreen features our Epcon single-family homes. With minimal steps between indoor and outdoor spaces, extra-wide interior doorways and large open floorplans, these homes are made for entertaining and enjoying life. You can enjoy your weekends again too at Evergreen because the yards are maintained by the HOA giving you plenty of time to enjoy the organized activities and resort-style amenities.

Falls Creek
Falls Creek Drive, Youngsville, NC 27596
From the low $300s | 2,225-3,972 sq. ft.

Falls Creek is a beautiful new home community in Franklin County just over the Wake County line in the quaint town of Youngsville, NC near Wake Forest. Falls Creek offers a quiet friendly environment, highly rated schools and easy access to Wake Forest and Raleigh. There are 57 large lots ranging in size from 0.58 acres to 1.89 acres.

Gateway Commons
Gateway Commons Circle. Wake Forest, NC 27587
New Townhomes Coming Soon!

A new 77-unit townhome development in Wake Forest by McKee Homes. The townhomes will be located adjacent to the Gateway Commons shopping center less than 3 miles from downtown Wake Forest. Very close to the highly rated Wake Forest Charter Academy and shopping. Join our VIP list to get early notification about floor plans, lot availability, pricing and incentives!

Heather Glen
1000 Sky Wave Trail, Raleigh, NC 27603
From the low $300’s | 2,225-3,965 sq. ft.

Heather Glen offers a quiet country setting just 12 miles south of downtown Raleigh for the best of both worlds. With large lots and a variety of floor plans to choose from, Heather Glen is an ideal neighborhood located just minutes from Lake Benson in Garner off Jordan Road near Ten Ten Road.

Johns Pointe
4032 Cane Garden Drive, Raleigh, NC 27610
New Phase Coming 2020

Johns Pointe is only 8 miles from downtown Raleigh with all it has to offer including entertainment at the Walnut Creek Amphitheatre, museums, shopping at White Oak Crossing, and convenient access to I-40 and I-440.

Our last phase in Johns Pointe sold out quickly, but we have a new phase with additional lots coming in 2020. This will be one of our hottest communities for new construction in Raleigh NC. Join our VIP list to get early notification about floor plans, lot availability, pricing and incentives!

Knightdale Station
714 Sunland Drive, Knightdale, NC 27545
From the low $300s | 2,225-3,600 sq. ft.

Knightdale Station is a large master-planned community in Knightdale, NC. At the center of the community is Knightdale Station Park, a 76-acre park in eastern Wake County. It includes two miles of paved trails, picnic shelters, the Ashley Wilder Dog Park, athletic fields, restrooms and a large playground. The farm and train-themed playground serves as a reminder of Knightdale’s agricultural and railroad centered past. With a private school and YMCA right next to the community Knightdale Station is an ideal family-friendly neighborhood.

Summerwind Plantation
534 Summerwind Plantation Drive, Garner, NC 27529
From the mid $200’s | 1793-2932 sq. ft.

Summerwind Plantation by McKee Homes is an established Garner community located near I-40 and Highway 42 in the Cleveland area of Johnston County. Summerwind Plantation features new single-family homes from the mid $200s. Amenities include a pool and bath house.  Convenient to both Raleigh and Fayetteville/Fort Bragg!

More Info

Give us a call at 919-344-0906 or visit us online to schedule an appointment to see beautiful new homes at our Raleigh NC new home communities. McKee Homes is continuing to expand our new construction in Raleigh NC and will be opening additional new single-family and townhome communities in the future.

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McKee Homes Wilmington NC New Home Communities

McKee Homes has been building in Wilmington NC since 2013 when we opened Hanover Reserve. Since then we have opened or started new phases in six new home communities in Wilmington and Leland. We have also just built a new design studio in Leland at 2163 Britton Rd to service all our Wilmington NC New Home Communities.


Hanover Reserve
1353 Eastbourne Drive, Wilmington, NC 28411
From the high $200’s | 1,900-3,700 sq. ft

Our first of six Wilmington NC new home communities, location and value are the biggest draws to Hanover Reserve. It offers the opportunity to be in Wilmington with easy access to everything in town, great beaches and parks.

Hanover Reserve is convenient to Ogden Park, one of Wilmington’s largest and most complete parks, with playgrounds, picnic areas, lighted playing fields and tennis courts, perfect for youth leagues.


Lanvale Forest
4505 Combs Forest Court, Leland, NC 28451
From the low $200’s | 1,300-2,932 sq. ft.

Come visit our new model home at 4505 Combs Forest Court!

Lanvale Forest is nestled in the heart of north Brunswick County only minutes from Downtown Wilmington. The community offers a pool and pool/bath house, sidewalks and street lights.

Enjoy living near Wilmington with the lower cost of living and taxes associated with the town of Leland. Leland is a new, up and coming area that gives residents the convenience of proximity to Wilmington while choosing from a variety of beaches in either Brunswick or New Hanover County.


Winds Harbor
Gregory Thorpe Lane at Middle Sound Loop Road, Wilmington, NC 28411
From the high $300’s

Only one opportunity left in this desirable neighborhood!
Winds Harbor is just around the corner from Middle Sound Marina giving it one of the best locations of all our Wilmington NC new home communities.

This ideal family friendly location is less than two thousand feet from the Intracoastal Waterway and a short drive from beautiful Wrightsville Beach, Mayfaire Shopping Center, and historic downtown Wilmington.


Cameron Trace
1621 Flushing Drive, Wilmington, NC 28411
From the high $200’s | 1,800-3,000 sq. ft.

Cameron Trace is one of our newer Wilmington NC new home communities located in a quiet, private part of Wilmington with easy access to I40 / College and N. Market offering privacy and convenience!

There are several ponds in the community, the largest of which is over 3 acres. Cameron Trace will have approximately 120 single family homes. The exterior elevations are the McKee Homes Coastal and most homesites will allow for an optional 3rd car garage.


Clay Crossing
404 Middle Grove Ln at Darden Rd, Wilmington, NC 28411
From the low $300’s | 1,900-3,600 sq. ft.

One of our newest Wilmington NC new home communities! Clay Crossing is a quaint twenty-one lot community perfectly situated off Darden Road between Middle Sound Loop Road and Wendover Lane in Wilmington.

Clay Crossing features our European elevation floor plans, giving the neighborhood a unique look. Just minutes from the intracoastal waterway, the new Ogden Market Place, local restaurants, Pages Creek Park Preserve, and beaches!

Clay Crossing is in the Ogden Elementary school district!


More Info

For more information about any of our McKee Homes Wilmington NC new home communities, please contact one of our friendly online sales consultants at 910-208-9305.

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McKee Homes Quick Move-In Sales Event

In recent years the need for new and affordable housing has grown exponentially. A recent analysis on new home construction by the US Dept of Housing and Urban Development showed that the demand for new housing was 10 times higher than the amount of housing available. Additional reports have placed new home construction starts at a sixty-year low.

Along with the housing shortage has come an increase in new home prices; Zillow recently reported an increase in home prices of approximately 7.6% over the past year. While this increase is not as drastic as in previous years, prices are still trending slowly upward. This, combined with the shortage of affordable housing, has made it more difficult for buyers in the market to find a bargain when looking for a new home.

Obviously, this bodes well for new home builders; it means that demand for new homes is high. However, budget conscious buyers may be feeling stressed over the lack of affordable homes. Additionally, the ever-present possibility that mortgage rates could rise puts pressure on buyers to purchase at the current rate to avoid paying more later.

Quick Move-In Homes: Available!

To counter these market issues, McKee Homes is kicking off 2019 with a Quick Move-In Sales Event. For Quick Move-In homes, the building process is complete. The stress that can accompany a new build is eliminated; there is no waiting on lot permits or worrying about bad weather conditions affecting construction. McKee’s Quick Move-In homes are gorgeously finished, spacious, located in beautiful neighborhoods, and ready for a family to move right in.

McKee Homes Quick Move-In sales event incentive offers vary by neighborhood and home. Select qualifying homes are eligible for $7,500 in incentives and buyers may be applicable for reduced mortgage rates when using a McKee preferred lender. To cap it off, some of these homes also qualify for an extra $5,000 in incentives. Additionally, these new homes are available now – What could be better?

The only thing more impressive than the incentives offered on Quick Move-In homes is the large selection available. McKee Homes has 30 neighborhoods throughout eastern North Carolina, and Quick Move-In homes are available in many of these neighborhoods. McKee Homes’ new home sales consultants are always available, happy to answer your questions, and ready to help find the best neighborhood and home for your family. Give us a call at 910-672-7296 today, and set a VIP appointment to view any of our beautiful homes.

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How The Prime Rate Affects Mortgage Interest Rates

Most people assume that when the prime rate goes up, mortgage interest rates quickly follow. While there is not a direct correlation between the two, the prime rate can indirectly influence many mortgage loan rates.

Prime Rate

The prime rate is based largely on the federal funds rate, tracking about 3% higher than the Federal Reserve rate, and is the commercial short-term interest rate. It is often referred to as the rate that non-bank entities and consumers with the best credit ratings can borrow money from banks.

The Wall Street Journal surveys 30 major banks and re-calibrates the rate every time three-quarters of those banks change their rates. Because of this frequency, the WSJ Prime Rate is one of the most widely accepted current prime rates.

Which Rates Are Affected by Changes In the Prime Rate

While credit card, auto loan, home equity and other short-term loan rates are directly affected by the prime rate, most long-term loans such as 30 year fixed-rate mortgage loans are only indirectly influenced by changes in the prime rate. The exception is adjustable rate mortgages (ARMs), which are directly affected by changes in the prime rate.

How The Prime Rate Affects Mortgage Interest Rates

Mortgage rates are generally determined by economic factors rather than the federal funds rate or the prime rate. The supply and demand for new homes and the supply of money by the Federal Reserve both influence the mortgage interest rate.

When the Federal Reserve increases the supply of money circulating in the economy, market interest rates are pushed lower to encourage economic activity. When the supply of money is decreased, the rates will rise.

A high demand for new homes, especially with low supply, will generally push mortgage rates up, while a lower demand for homes will push the rates down.

While seldom used as a mortgage index, the prime rate does indirectly influence mortgage rates. The prime rate is an important national benchmark which reflects the “mood” of the economy. As the prime rate moves up in response to a federal funds increase, short-term consumer loan rates, home equity loans and adjustable rate mortgages follow suit. Fixed mortgage rates will historically move up as well, although there is usually a delay, or “lag-time” between changes in the prime rate and changes in the 30-year fixed mortgage interest rate as they are not directly tied together.

Conclusion

While the Federal Reserve rate and prime rate directly affect short term loans, they also indirectly influence fixed mortgage rates eventually. If you are considering buying a new home and are following the prime rate increases wondering if mortgage interest rates will follow, you can expect that they will eventually move up, especially if there is a high demand for housing.

With new home prices going up in 2018, a high demand for housing, and the prime rate increasing to over 5% last year, it’s better to act now instead of waiting, to avoid paying a lot more for a new home later.