If you have a good credit score, are employed and are able to save the cost of the down payment and cover closing costs you should build a home. If any of these things are a not true it may be time to regroup.
Fact is interest rates have fallen dramatically from a high of 8% in October of 2023 and “the general consensus among industry professionals is that mortgage rates will slowly decline in the last quarter of 2024. The projected declines have shrunk, though, in recent months. At the start of the year, for instance, Fannie Mae predicted rates would drop to 5.8%” according to the Wall Street Journal May 2nd 2024.
How does this impact construction costs? Most if not all construction material costs have stabilized and lumber has fallen to more manageable levels. Supply chain disruptions are no longer an issue have since the disruptions caused by the COVID 19 pandemic.
Working with Virginia Building Solutions you have the bonus benefit of knowing your home costs upfront. There will be no surprises. The cost of the home itself is fixed and will not change. Your material costs are locked before any construction begins. In addition if you plan on living in your home longer than 5 years it is you will see an appreciation in the value of your home.
Ultimately, it’s your decision of when to build a home now. Life goes on regardless whether the timing is right or not but know that building now is definitely a viable option for any potential customer now. Even though current interest rates are higher than they have been in earlier years , you will continue to have the option to refinance later when interest rates recede and this may happen as soon as six months to a year after you close on your home. And think of it this way if interest rates rise, you’ll be happy you built now.
