Jan 16, 2024 - Real Estate

How a drop in mortgage rates affects Charlotte homebuyers

Home for sale

Photo: Ashley Mahoney/Axios

After peaking above 8%, mortgage rates have fallen closer to 6% in recent months.

The big picture: A one percentage point drop in mortgage rates doesn’t have a huge impact on a new homebuyer’s monthly payment. But even a slight dip last November was enough to get some buyers off the sidelines.

State of play: A $400,000 home costs nearly $1,000 more per month than it did two years ago — in principal and interest alone.

Data: Freddie Mac fixed-rate mortgage calculator; Note: 30-year fixed-rate mortgage; Chart: Axios Visuals

What they’re saying: “I think rates have triggered a bit more demand but nothing dramatic yet,” local real estate agent Jeff Clay says.

  • Pending home sales were higher in December 2023, compared to 2022, but most potential buyers are waiting for rates to fall further before they make the leap, Clay says.

Zoom in: Zillow predicts Charlotte will be one of the hottest housing markets in 2024.

Go deeper: How to interpret mortgage rates you see in headlines

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