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LGI Homes: The 3.99% 5/1 ARM Is Turning Heads—A Potential Game-Changer for First-Time Buyers!

In the third quarter of 2025, LGI Homes reported financial and operational results that reflect both challenges and strategic advantages in the current housing market. The company successfully closed 1,107 homes, accounting for $397 million in revenue, though this marked a notable decline of 39.2% compared to the previous year, primarily due to a significant decrease in closings. This decline highlights the pressures from a challenging market environment, particularly with the influence of high mortgage rates affecting affordability. The gross margin was reported at 21.5%, with an adjusted gross margin of 24.5%, both aligning with the company’s prior guidance. These margins were sustained through strategic pricing and financing incentives, such as mortgage rate buydowns, which were effectively utilized to close sales, albeit with caution against overextending incentives that could pressure further margins.