A 24-year-old homebuyer whose builder paid for a lower mortgage interest rate said it was what he needed to purchase his first home

• Higher mortgage rates led to a dramatic downturn in homebuyer demand last year.
• Sales have fallen and new home construction has stalled in some markets.
• To combat cancellations, more homebuilders are offering to pay down mortgages for their clients.

As higher mortgage rates drag down housing demand, US homebuilders are pulling out all the stops to keep potential buyers interested in their houses.