State of the Interest Rate Climate | Special-advertising | postandcourier.com - The Post and Courier

State of the Interest Rate Climate | Special-advertising | postandcourier.com

Since the life-changing year 2020, the real estate market has seen drastic change. From dramatically fluctuating rates to buying frenzies in hot market segments, real estate continues to be an industry to watch closely as we navigate the current economy.

The Charleston area is no exception to the rapidly shifting real estate landscape.

With a tremendous influx of new residents flocking to the Lowcountry over the past few years, rising prices, and lack of inventory, staying up to date on current rates and taking stock of your resources is the best way to navigate the Charleston market.

According to Forbes, the 30-year mortgage rate is currently 7.38%, while the 15-year mortgage rate is 6.62%. As of now, the rates seem to be holding fairly steady, with little change from week to week.

The Mortgage Reports state that as mortgage rates and home prices have shot up, they have “limited the purchasing power of many aspiring homeowners.” According to the current report, many current homeowners or buyers aren’t finding much motivation to move or refinance as the rates remain in the higher 6-7% range.

While this news seems bleak as we finish the first half of 2024, The Mortgage Reports predicts a brighter second half. Experts are widely predicting that the Federal Reserve will start cutting rates in the back half of the year, and we should start to see the rates come down to more reasonable levels.

While we may never see the dramatic 2-3% rates that the markets saw during the Pandemic as a result of the Federal Reserve taking emergency action to slash rates, it’s expected that they will drop a little.

Charleston, however, is a unique market. Despite the high prices and interest rates, homes are still selling as many in the luxury market are undeterred by these two major obstacles. Charleston also has a significant veteran and military market that benefits from VA loans and Basic Allowance for Housing (BAH) to overcome the higher mortgage rates. Despite the lower than normal inventory, local Realtors agree that homes that are in good condition and priced well are selling, but for now, the number of people looking to buy in the area still outweighs the number of homes on the market.

First-time homebuyers are definitely feeling the most pressure in today’s market as many areas of the Charleston region have them priced out. However, talking with experienced Realtors who can help you navigate the low inventory and surging prices is strongly recommended. First-time buyers are also benefiting from “shopping” for mortgage rates from lenders to find the best deal. Talking with experts can ensure you understand your options and connect you with potential grants or other resources tailored to first-time buyers or buyers with little equity behind them.

Despite higher prices and rates, The Mortgage Reports also encourage buyers to check personal rates as “borrowers with healthy credit profiles and strong finances often get mortgage rates well below the industry norm.”