After several years of volatility, interest rates are finally showing signs of settling into a stable range. According to HousingWire’s lead analyst, Logan Mohtashami, mortgage rates in 2025 are expected to hover between 5.75% and 7.25%, while the 10-year Treasury yield is projected to stay between 3.80% and 4.70%.

Despite headlines around tariffs and inflation, the 10-year Treasury has generally remained within this range. While 30 year fixed rates currently aren't at historic lows, locking in a mortgage at Today’s interest rates is still below the historical mortgage rate average of 7.73%.

The current housing market remains tight, with fewer homes available for sale. Demand continues to outpace supply, driving up prices on existing homes. Zillow is predicting moderate price appreciation in 2025 in the Midwest with an average increase in price of 3 to 4 percent, while in cities like Columbus, Ohio with robust growth the price increase will likely be higher.

In many cases, buyers are paying a premium for outdated homes that still require costly renovations. Building a custom home ensures your money goes directly toward a home that fits your exact vision—no compromise required.

Many of the homes available on the market today require significant remodeling to meet modern design and functionality standards. Between labor shortages, rising material costs, and unforeseen structural issues, renovation expenses can quickly surpass the cost of building a brand-new home. When you build new, there are few opportunities for surprise costs—everything is designed to fit your lifestyle from the start.

Even after renovations, older homes often contain outdated systems that will soon need replacing—think HVAC, electrical, plumbing, and roofing. These updates can easily add tens of thousands of dollars to your overall costs. A newly built home comes with energy-efficient systems, modern building materials, and fewer maintenance headaches.

New homes built in 2025 are designed with sustainability and technology in mind. From better insulation and energy-efficient HVAC systems to smart lighting and appliances, building new lets you integrate the latest features from the ground up—helping you save on energy bills while increasing comfort and convenience.

Older homes often come with outdated layouts, small kitchens, and inefficient use of space. When you build new, you have complete control over the design—whether it’s an open-concept living space, a gourmet kitchen, or a spa-like primary suite. Your home is built to fit your needs, not retrofitted to accommodate them.

Bonus Insight: Building Is Largely Insulated from Tariffs

While global tariff news continues to make headlines, building a custom home remains largely unaffected. Around 7% of construction inputs come from imported materials, making new home construction one of the most American-made purchases you can make. Most materials and labor are sourced within the U.S., and when tariffs do impact certain goods, we can often source substitute materials with limited tariff exposure.

Building a custom home in 2025 ensures you get exactly what you want, built with modern materials, energy efficiency, and the latest technology—all while avoiding many of the hidden risks and costs of older homes.

If you’re ready to explore what’s possible with a fully custom home, let’s talk!