Are Mortgage Rates Really What’s Holding You Back?

While mortgage rates have risen, they remain moderate in a historical context. In the 1980s, rates peaked at 16.64%, staying above 10% for years. By the 1990s, they dropped to 6.91%, and in the 2000s, they fluctuated between 8% and 5%. The 2010s saw an unprecedented drop to 3-4%, an exception rather than the norm.

Today’s 6-7% rates are higher than recent years but far from record highs. The bigger challenge in the majority of Charleston markets are the rising home prices, driven by strong demand and tight inventory. While sales volume has dipped slightly, home values remain strong, especially in the luxury market, where out-of-state buyers continue to push prices upward. The median home price is projected to rise another 6-8% in 2025, solidifying select areas of Charleston as some of the more expensive markets. However, there are signs of market balancing, with homes selling slightly below asking price and staying on the market for an average of 46 days.

Despite affordability challenges, real estate remains a long-term investment. Staying informed on market trends and financing options is key, and I’m here to help if you're considering buying or selling in Charleston.