Mar 7, 2024 - News

🏠 Mortgage rates affect home prices

Median home sales price in the Charlotte metro area
Data: Redfin; Chart: Alice Feng and Jared Whalen/Axios Visuals

Lower mortgage rates could push up home prices in the Charlotte area and nationwide if demand surges and inventory remains tight.

Why it matters: Steep borrowing costs are just one piece of the housing affordability crisis.

State of play: U.S. rates for 30-year mortgages are down from 20-year highs, but have crossed 7% again.

Zoom in: In Charlotte, home prices jumped when mortgage rates dropped below 3%. As rate hikes locked current homeowners in place, prices remained elevated.

The fine print: Despite stabilizing, median home prices locally are still higher than they were prepandemic.

  • The Charlotte-area median sales price was around $375,000 in December 2023, compared to just under $232,000 in December 2019, per Redfin.

Flashback: In 2021, when rates hovered below 3.5%, bidding wars were rampant and home prices surged by double-digit percentages.

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