Dip in Mortgage Rates Gives South Carolina Homebuyers ‘Wiggle Room’
In a positive turn of events for the housing market, South Carolina has seen a substantial increase in home inventory levels along with a noteworthy dip in mortgage rates. This combination seems to be paving the way for a more stable local housing market as the summer season approaches. Punctuated by a phenomenal 40 percent surge in April, the number of homes available for sale in South Carolina has more than doubled compared to 2022. With over 22,000 choices now available to prospective homeowners, this increase in market selection coupled with lower borrowing costs positions homebuyers at an advantage as the summer heat ramps up.
A Welcome Turnaround
There’s no denying that South Carolina’s housing market had a shaky start to 2024. However, residential purchases have rebounded with a 7.2 percent rise in April following a nearly double-digit dip in March. Last month marked a welcome milestone with the first positive showing for April since 2021. In terms of numbers, 7,906 homes changed hands across the state at a median sales price of $340,000, which is up 5.4 percent from a year ago.
Local Market Performance
Drilling down into the performance of local markets, several submarkets reported double-digit sales increases, with Charleston and Myrtle Beach showing 8 percent and 2.1 percent increases, respectively. Greenville performed exceptionally well with a 15.8 percent spike, while Columbia also posted a healthy 13.9 percent increase. The second-highest leap belonged to Spartanburg, reporting an 18.5 percent rise, closely followed by Beaufort registering a 27.2 percent surge.
A Dip in Mortgage Rates Gives Room to Breathe
While mortgage rates have been one of the biggest hurdles for aspiring homeowners, a dip for the second consecutive week offers some respite ahead of the summer season. On the brighter side, the average 30-year fixed-rate mortgage slipped to 6.94 percent from 7.02 percent a week earlier, according to Freddie Mac. Also, the 15-year home loan, a comparable short-term option, fell and landed at 6.24 percent. Such news is indeed a sight for sore eyes for potential homebuyers and could provide a bit of breathing room in their budgets.
Optimistic Outlook
The recent decline in mortgage rates and uptick in mortgage applications paint an optimistic picture for the real estate market in the months to come. “Rates below 7 percent are good news for prospective buyers, and we expect them to continue to inch lower this summer,” commented Bob Broeksmit, CEO of the Mortgage Bankers Association. Undoubtedly, the Federal Reserve’s future decisions regarding its key interest rates will be a pivotal factor that would have ripple effects on mortgages.
Final Remarks
In short, it appears that there is a glimmer of hope for potential homeowners in South Carolina. The recent favorable shift in the local housing market presents an optimistic forecast, especially with the dip in mortgage rates and surge in the housing inventory. These developments are opening up a vista of opportunities for the homebuyers in the state, granting them the ‘wiggle room’ that had been missing in recent times.
