In September, mortgage rates continued to fall, reaching levels last seen two years ago. According to Freddie Mac, the average rate for a 30-year fixed-rate mortgage decreased to 6.18%, marking a 32-basis-point (bps) drop from August’s average. The 15-year fixed-rate mortgage experienced an even sharper decline, falling by 42 bps to 5.26%. Additionally, the 10-year Treasury rate fell by 23 bps, moving from 3.98% in August to 3.75%.
Building on Your Own Lot: The Advantages
Buying a house is one of life’s most significant investments. Building a home adds another layer of customization and personalization, as it allows homeowners to select the exact lot where they want to establish their dream home. Building on your own lot offers several advantages that streamline the process and help homeowners achieve their vision.
Location Matters
Building on your own lot allows for intentional location selection, ensuring that you do not have to compromise on a ZIP code or specific setting. Within a subdivision, you can even choose the precise lot—whether it’s on a particular street, near a cul-de-sac, or surrounded by more green space. This creates a personalized living experience that aligns with your lifestyle, budget, and long-term plans.
Customization and Control
One of the most significant benefits of building on your lot is the complete design freedom it offers. Unlike buying a pre-built home, you have more flexibility in customizing the floor plan, layout, and finishes to reflect your personal style and preferences. Additionally, having a larger lot provides the opportunity for more outdoor space, potential additions, and long-term expansions.
Planning for the Future
Choosing to build on your own lot means you can select a property that aligns with your long-term vision. Careful planning ensures that future projects—such as landscaping, expansions, or even a pool—are feasible. You have more control over the lot’s size, layout, and orientation, helping you maximize the potential of your new home.
A Personal Connection
Living in a newly built, custom-designed home often creates a strong emotional connection. The experience of stepping into a space that you’ve planned from the ground up—complete with the “new home smell”—is unique. The home’s design, materials, and features are tailored to your preferences, making it a true reflection of your style and personality.
Fewer Restrictions
Building on your own lot often means fewer restrictions compared to neighborhoods with homeowners associations (HOAs) or development guidelines. While some communities may impose limits on home size, design, or other factors, building on your lot allows more flexibility. This freedom extends from the overall architecture to interior finishes, offering more control over your home’s functionality and aesthetics.
Mortgage Outlook for 2024
Looking ahead, the National Association of Home Builders (NAHB) projects a continued decline in mortgage rates. The 30-year mortgage rate is expected to approach 6% by the end of 2024, with further easing to below 6% in 2025. The NAHB also anticipates additional rate cuts by the Federal Reserve before the close of 2024, which could contribute to improved affordability for homebuyers.
Building on your own lot not only offers a customizable living experience but also positions homeowners to benefit from the potential decline in mortgage rates. With the possibility of reduced rates on the horizon, now may be an opportune time to plan your dream home and secure a more favorable financial outlook.
