Question · Q4 2025
Alex Riegel asked if the sale of Century Living units contributed to the gross margin headwind in Q4. He also inquired if the 3.75% teaser interest rate advertised on the company's website was a significant driver for buyer action and sought management's perspective on the industry's current level of spec inventory development as the spring selling season approached.
Answer
Scott Dixon, Chief Financial Officer, confirmed that the sale of Century Living units was not included in the gross margin or incentive commentary. Regarding mortgage rates, Dixon explained that the average originated rate was between 5.25%-5.5%, with teaser rates below 4% available for ARM products and a 4.875% 30-year fixed rate being popular. Rob Francescon, CEO and President, noted that the industry entered the year with fewer specs than the prior year, but new product could be created quickly due to reduced cycle times, which for Century Communities averaged 114 calendar days.
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