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.
Charleston SC Mortgage Rates Near Record Low What to Know How Much You Can Afford? The average U.S. rate on a 30-year fixed mortgage has fallen to near its record low set earlier this month bringing down the rates for those of us here in Charleston, SC as well. The rate on the most popular mortgage dipped to 3.37% from 3.39% last week, mortgage buyer Freddie Mac said Thursday. Two weeks ago, the rate reached 3.36%, its lowest level on records dating to 1971. The average rate on the 15-year fixed mortgage, often used for refinancing, set a record low of 2.66%, down from last week’s 2.7%. Cheaper mortgages are helping fuel a modest but steady housing recovery, coupled with falling inventory the Charleston SC housing market has seen a dramatic uptick in recent months. The average rate on the 30-year loan has remained below 4% all year. And rates have fallen even further since the Federal Reserve started buying mortgage bonds in September to try to encourage more borrowing and spending. The Fed said it would continue buying bonds until the job market shows substantial improvement. When home prices rise, people tend to feel wealthier and spend more freely. And consumer spending drives nearly 70% of economic activity. Charleston, SC real estate agent and ex-mortgage professional states: ” be prepared for mortgage rates to eventually increase as soon as the fed realizes they can’t afford to continue to purchase bonds in order to fund the housing market recovery. A natural housing recovery not based on artificial measures is what will achieve a proper recovery; buying bonds is simply a band-aid”. Home sales have risen from last year, and prices are rising more consistently in most areas. Charleston SC home builders as well as those around the U.S. are more confident and starting more homes. Lower rates have also persuaded more people to refinance. That typically leads to lower monthly mortgage payments and more spending. Not only builders in Mt. Pleasant SC, but also throughout the nation last month started construction on single-family houses and apartments at the fastest rate in more than four years, the Commerce Department said Wednesday. And they laid plans to build homes at an even fast pace in coming months — a signal of their confidence that the housing rebound will last. Other recent reports have shown marked improvement in the housing market five years after the bubble burst. Still, the housing market has a long way to a full recovery. And many people are unable to take advantage of the low rates, either because they can’t qualify for stricter lending rules or they lack the money to meet larger down payment requirements. To calculate average mortgage rates, Freddie Mac surveys lenders across the country on Monday through Wednesday of each week. The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1% of the loan amount. The average fee for 30-year loans was 0.7 point, unchanged from last week. The fee for 15-year loans also held steady at 0.6 point. The average rate on a one-year adjustable-rate mortgage edged up to 2.60% from 2.59%. The fee for one-year adjustable rate loans was stable at 0.4 point. The average rate on a five-year adjustable-rate mortgage rose to 2.75% from 2.73%. The fee was unchanged at 0.6 point. EASY MORTGAGE CALCULATOR Some Content By: USAToday.com