Are Mortgage Rates Really What’s Holding You Back?

Let’s address the elephant in the open floor plan: yes, mortgage rates have gone up. But are they really the reason so many buyers feel stuck?

Not entirely.

📉 Mortgage Rates in Perspective

Today’s 6–7% rates feel high if you’re comparing them to the 3% range we saw during the pandemic. But historically? They're actually moderate:

• 1980s: Rates peaked at 16.64% and stayed over 10% for years.
• 1990s: Averaged around 6.91%
• 2000s: Fluctuated between 8% and 5%
• 2010s: Dropped to 3–4%—an outlier, not the norm
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So no, 6.75% isn’t ideal—but it’s not a crisis. It’s just a return to normal.

🏘️ The Bigger Issue: Inventory & Demand

In Charleston, the real pressure isn’t the rate—it’s the price. Across nearly every micro-market, prices have continued to rise due to low inventory and high demand, especially from out-of-state buyers.

Here’s what’s happening now, market by market:

📍 Daniel Island

This planned community remains a high-demand pocket with extremely limited inventory. Homes are still selling quickly and often just below asking price, but buyers are negotiating more than they were in 2021. New listings under $2M remain competitive. It’s a market that rewards preparation and fast decision-making.

📍 Mount Pleasant

Mount Pleasant continues to be one of Charleston’s most desirable areas, thanks to its scenic waterfront neighborhoods, easy access to downtown Charleston, and a thriving community vibe. Inventory remains limited, particularly in popular neighborhoods like Old Village, Park West, and Carolina Park. Homes priced under $800K typically sell quickly, while higher-end properties may stay on the market longer but still hold strong values due to steady demand from both local buyers and relocators. With a good mix of new construction and established homes, Mount Pleasant offers opportunities for a range of buyers looking to invest in one of Charleston’s most vibrant markets.

📍 Isle of Palms

Luxury buyers from the Northeast and West Coast continue to drive pricing here. While showings have slowed slightly, oceanfront and deepwater homes are still commanding strong prices. The average days on market has stretched to 50+, offering buyers a little breathing room—but no real discounts on the most desirable properties.

📍 Downtown Charleston

Historic charm still holds premium value. Renovated homes South of Broad or in Harleston Village are holding strong, especially those with off-street parking or modern updates. Affordability is an issue here—but for investors and second-home buyers, rates aren’t a barrier. Inventory remains tight.

📍 West Ashley

This area offers more attainable pricing and is seeing increased attention from buyers priced out of Mount Pleasant or James Island. Homes under $700K are moving steadily, but homes over that threshold are sitting longer unless fully updated. It’s becoming a value-driven, strategy-friendly part of the Charleston market.

📍 Johns Island

New construction has created options, but resale inventory is still thin. This area is attractive to relocation buyers looking for space, privacy, and potential appreciation. Homes with usable acreage or thoughtful upgrades are drawing consistent interest, especially those under $900K.

💡 What This Means for You

Yes, the monthly payment matters—but so does home appreciation, local demand, and timing. Waiting for rates to “drop back to 3%” isn’t realistic (and if it does happen, you’ll likely face even higher prices and stiffer competition).

If you're buying a home you plan to keep for 5+ years, it's still a sound investment—especially in Charleston, where coastal desirability and job growth continue to push values upward.

🔄 Market Trends to Watch:

• Charleston median home price is expected to rise another 6–8% in 2025
• Days on market have increased to 46 as an overall average, giving buyers slightly more leverage
• More homes are selling just below list price, a shift from previous year’s bidding wars
• Rate buydowns and seller credits are coming back into play for the buyers and sellers who are thinking creatively

📞 Ready to Get Clear on the Numbers?

Buying in a market like this takes more than a quick rate quote—it takes strategy, timing, and local expertise. Whether you're exploring Daniel Island, Mount Pleasant, Downtown, IOP, or a quiet corner of West Ashley, I’ll help you understand where the real opportunities are—and how to make them work for you.



→ Reach out today for a no-pressure conversation about your goals. I’ll help you frame the right move, even in this market.