In the midst of a pandemic, rising lumber prices, and a housing shortage it is no wonder the home buying process can be frustrating and even intimidating during these times. Throughout the home purchasing experience, some may have pondered the option of building their next home. Most of those who get started thinking along those lines are quickly turned off by the rising lumber and material costs. However, we are amid some of the lowest mortgage rates in history. Do these low rates help outset the higher building costs? The median cost to build a home could increase by $18,000, but on average you could get an interest rate of around 3%. For example, a $200,000 home at 4% interest rate will accrue $140,000 in interest payments. A $200,000 home at 3% interest rate will accrue $100,000 in interest payments. That is a savings of $40,000 compared to buying the same home this time last year! Even though the cost of building a new home may have gone up, the savings you will receive in the long run over the life of your loan makes building a home worth doing.