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In recent years, we’ve enjoyed historically low interest rates, making it an appealing time for many to take the plunge into building their dream homes. However, as interest rates have begun to rise, some potential homeowners are feeling hesitant about whether now is the right time to start a new construction project. While it’s true that interest rates are higher than they were in the past three years, they are still within the average range over the last 20 years. Here’s why it remains a great time to build your new home.

Building a home is a significant investment that tends to appreciate over time. Real estate historically provides solid returns, especially in desirable locations. By starting your construction project now, you’re investing in your future. Even with slightly higher interest rates, the value of your home is likely to increase, offsetting the higher borrowing costs in the long run.

This data is simulated, as we do not have access to real historical interest rates. If you need the actual historical data, we would recommend checking official financial websites or databases like the Federal Reserve Economic Data (FRED) for accurate information. ​

While interest rates are currently higher than they were a few years ago, they are still within a historical average. There is always the possibility that rates could rise even further. By securing a mortgage now, you protect yourself against future increases. Many lenders also offer refinancing options, allowing you to take advantage of lower rates should they decrease in the future.
One thing many clients do not realize is that the cost of materials and labor has been steadily increasing. We try to educate our potential clients that interest rates and material cost are like a seesaw. In short, this means that when interest rates decline material cost will rise due to demand. When interest rates increase, material cost tend to decrease. Yet, the other underlining issue we have started to see in the last year is labor cost increasing. This is due to inflation continuing to rise. Labor prices cannot stay the same when subcontractors are paying more for gas, groceries, and everyday needs. The ugly truth remains -delaying your build could mean paying more for the same project in the future. By starting now, you lock in current prices and avoid potential inflation in construction costs. This can be particularly advantageous if you have a fixed budget.


In conclusion, while rising interest rates may seem daunting at first, they should not overshadow the numerous advantages of building your dream home now. The long-term investment potential, coupled with the ability to customize and modernize your living space, makes building an attractive option. By starting your project now, you can avoid the escalating costs of materials and labor, which are subject to inflationary pressures. Additionally, securing a mortgage at current rates safeguards you against future increases, and refinancing options remain available should rates decrease. Building a home is not just about immediate costs but about making a wise, forward-thinking investment in your future. The time to build is still now, and the benefits far outweigh the challenges.