Which of the following best exemplifies external obsolescence?

External obsolescence refers to a reduction in property value due to negative influences outside of the property itself. This often involves factors that are not within the control of the property owner, such as changes in the surrounding environment or infrastructure that can adversely impact desirability and value.

The choice involving a new freeway built nearby is a prime example of external obsolescence. When a freeway is constructed near a residential neighborhood, it can lead to increased noise, traffic, and pollution, which can deter potential buyers and reduce the appeal of homes in the vicinity. The introduction of such infrastructure can alter the dynamics of the area, leading to decreased property values for the affected houses due to the surrounding conditions.

In contrast, the other options listed reflect issues that are either directly related to the property itself or are market factors not necessarily linked to external influences. A poorly maintained lawn is a condition that reflects neglect of the property, while outdated interior design pertains to the homeowner's choices regarding decoration and modernization. A decrease in interest rates, on the other hand, is a macroeconomic factor that can influence buying power and market conditions but does not directly link to a specific property experiencing value loss due to external factors.