Lower Lumber Prices + Lower Interest Rates = Great Time to Build

Lower Lumber Prices + Lower Interest Rates = Great Time to Build

As we navigate the Fall of 2025, two key market trends are combining to create one of the most compelling windows for those considering building or renovating a home.

Lumber Prices: At Their Lowest Since Last October

According to the US LBM Market Update dated September 2, 2025, the framing lumber composite has dropped to its lowest point since October 2024, driven by a notably weak week of trading ahead of Labor Day. Notably:

• Western SPF prices for 2×4 #2 have plunged $95 per MBF in just three weeks, with demand virtually nonexistent. 2403187.fs1.hubspotusercontent-na1.net

• Across the Eastern U.S., mill inventories are bloated, prompting mills to offer significant discounts—up to $30 per MBF lower—even in major trading zones like Boston and the Great Lakes. 2403187.fs1.hubspotusercontent-na1.net

This sharp drop in prices, along with plentiful availability and soft demand, marks a rare opportunity for cost-conscious builders and homeowners.

Mortgage Rates: Still Leaning Favorably

Lake Michigan Credit Union (LMCU)—a reliable lender for many across Michigan—continues to offer industry-low mortgage rates, with competitive options for both fixed and adjustable loans, minimal down-payment programs, and reduced closing costs. Lake Michigan Credit Union+1

While exact current rates weren’t directly visible, LMCU emphasizes affordability and streamlined access to financing for construction, purchase, or renovation loans. Lake Michigan Credit Union+1

The Sweet Spot: Build Now, Finance Smart

Lumber prices are plummeting just as financing remains accessible and affordable—a convergence that spells ideal timing for those looking to build or upgrade a home. With material costs softening dramatically and mortgage terms remaining attractive, both builders and future homeowners stand to save substantially.

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