Downward-trending mortgage rates, even amidst the high cost of construction, may be cracking open a window of opportunity for your church. This could be the intersection—finally!—of timing and your vision to better reach and serve your community.
It’s never easy, is it?
Trying to decide the right timing to build or expand your church’s facilities is tough. You know the need, you have the desire, and most importantly, you want confirmation of God’s timing…especially when everything seems to be so expensive.
It may seem counterintuitive for your church to consider new construction, remodeling, or purchasing a building. However, now may be just the time to pursue that vision.
Here’s why.
Though the actual increase of construction spending may slow in 2025 (American Institute of Architects) compared to recent years, high construction costs aren’t going anywhere. While we try to avoid saying things like, “new normal,” the reality is historically, construction costs increase. There isn’t a single cause responsible for increases, according to a 2024 JLL (global real estate company) report. Rising insurance premiums and higher labor costs, driven by a massive shortage of skilled construction workers, both contribute to construction increases, in addition to the actual materials.
But wait…!
As Forbes recently shared, mortgage rates are trending downward. Lower rates, naturally, make financing a construction or renovation project more affordable; however, declining rates often lead to increased demand for construction loans, which can drive up demand for contractors, subcontractors, and other laborers. Locking in a low rate now can provide long-term savings, as these favorable terms can stretch over decades, reducing the overall cost of borrowing. That means now could be a prime opportunity for a church to pursue its vision and invest in its future.
Here’s the reality for churches: the trajectory of construction costs will always be upward, and of course, interest rates fluctuate. “Is this a good time to build?” is only half the question. From a ministry perspective, the full question is, “Is this a good time to build the facility we need to carry out God’s plan for our church?”
The bottom line?
This may be a window of opportunity—somewhere between high rates and a hotly competitive construction demand—for your church to increase its capacity for reaching your community.
Coupled with the more favorable mortgage market is a new church loan option offered by AGFinancial, in which your rate lowers automatically* as the market rate lowers. This option virtually eliminates any regrets over having locked-in a rate, only to witness the market lower the next day.
Pursue your vision. Be sensitive to God’s timing. Contact one of our church loan consultants to discuss your specific situation. Let’s walk through the process together.
Interested in learning more? Read this article to find out what your church loan might really be costing you.
*Limitations may apply and subject to final approval.
