Why Construction Loan Interest Rates Are Higher and How to Plan Around Them

Construction loan rates averaged 7.5%–9.5% in mid-2025 — up to 3 points above a standard mortgage. Here's why lenders charge more and how to plan your budget around it.

Construction loan rates averaged 7.5%–9.5% in mid-2025 — up to 3 points above a standard mortgage. Here's why lenders charge more and how to plan your budget around it.