Mortgage Rates in Charleston, SC Stay High – Lenders, Banks

Recent Trends in Mortgage Rates (Past Six Months)

Mortgage rates over the past six months have fluctuated due to several economic factors. Rates spiked mid-2023, reaching around 7.79% in late October, the highest point of the year, as the Federal Reserve (Fed) continued to battle inflation with aggressive interest rate hikes. However, rates have started to decline modestly since then, influenced by economic indicators showing cooling inflation and slower economic growth. As of November 2023, the average 30-year fixed mortgage rate sits around 7.22%, down slightly from its peak.

Key factors affecting mortgage rates include inflation, Federal Reserve policies, and global economic conditions. As inflation pressures ease, mortgage rates tend to stabilize or decrease. For example, inflation decreased significantly in late 2023, which allowed for some relief in mortgage rates. Moreover, economic crises and global events (such as the Ukraine war) have added to the uncertainty, which has pushed more investors toward safer assets like U.S. Treasury bonds. This shift helped keep mortgage rates somewhat tempered, but the ongoing volatility means mortgage shoppers should still expect fluctuations.

The 10-year Treasury bond plays a critical role in mortgage rates. As demand for Treasury bonds rises (often during economic uncertainty), bond yields (i.e. the return profit) fall, and mortgage rates follow. When confidence in the economy grows, bond yields rise, and mortgage rates go up. Given that the 10-year Treasury bond yield is a reliable predictor for mortgage rates, recent trends suggest that mortgage rates will hover around 6.5%-7% going into 2024, with the possibility of modest reductions as the Fed continues to assess economic recovery.

Mortgage rates have been heavily influenced by the Fed’s aggressive inflation control efforts and broader economic factors, including the bond market and inflation trends. As rates move into 2024, homebuyers should anticipate rates staying above 6%, but potential reductions could occur if inflation continues to fall and economic conditions weaken. For jumbo loan borrowers, rates may be slightly higher, but still in line with overall mortgage trends.