APR (Annual Percentage Rate) includes costs and fees associated with the loan. The interest rate does not. The interest rate is simply the rate you pay on the loan, excluding any other costs.
Looking at the interest rate alone is not an effective way to evaluate a loan. The APR is much more effective, as it factors in the interest rate PLUS any other costs to finance the loan, providing a much more holistic view.
When you apply for a loan, you should always be able to see both the interest rate and the APR. If you don’t, ask your lender to provide both.
If you compare two loans with the same interest rate (note rate) and the APR is higher on one – you should find out what the additional costs are. This comparison will help you evaluate the loan products more effectively.
Homebuyers will soon have an added layer of protection when shopping around for a mortgage due to the new Homebuyers Privacy Protection Act. The new law is designed to prohibit the abuse of what’s known as trigger leads, which are when credit bureaus sell a borrower’s information immediately after a mortgage credit inquiry. The law makes it illegal for credit bureaus to do so without consumers’ consent.
“This new law is a major victory for mortgage borrowers that will protect them from the barrage of unwanted calls, texts, and emails they too often received immediately after applying for a mortgage,” said Mortgage Bankers Association President and CEO Bob Broeksmit. “It will create a more efficient, responsible, and respectful homebuying process when it goes into effect on March 5, 2026.”
NEW SALES – Pending (Ratified contracts) – New Written sales, a predictor of future closed sales, were down market wide -1% in September of ’24 versus September of ’23. However, last week 255 properties went under contract market wide, +3% from the same week last year. This is a strong and seasonally appropriate number.
CLOSED SALES – Year To date closed sales were at 13,390 at the end of September 2024. A very small difference from the 13,438 at the same time in 2023.
Third Quarter of 2024 closed sales were at 4,396, which is down 3 percent from 2023 (which had 4,510). As a reference, there were 5018 closed sales in 2022.
There were 1,254 closed sales in September 2024 which is down 11 percent from the 1,411 that we saw in September of 2023. Again, as a reference, there were 1,573 closed sales in September of 2022
SALES PRICE – The Median sale price closed out at $409,085 in September 2024. The Charleston market continues to stay in a tight band between $400k and $425k where it has been for most of the last 27+ months. The average sales price was $627,254 in September 2024.
AVERAGE SOLD PRICE PER SQFT
The median sales price has remained in a tight band but the average price per sqft remains near an all-time high, well above one year ago. Consumers are getting a smaller house for the money. Essentially, homes are continuing to appreciate despite a stable Median Sale Price.
INVENTORY – Approximately 2,000 new listings came online in September 2024, well ahead of last year’s number. Median Days on market was 26.
Inventory was at approximately 4,200 listings in September 2024. While this level of inventory is a significant increase, the gap between the number of listings available for sale and the number of listings needed to maintain a balanced market is still substantial. See chart below. We need approximately 2,100 additional listings market wide to achieve a balanced market (5 months of inventory)
The Charleston market has about ten weeks of inventory as a whole – this can vary by price range and specific location. The most active areas have inventory levels in the 6-10 week range.
NEW CONSTRUCTION – New construction represents 45% of all pending contracts in the MLS and new construction comprises about 36% of the closings.
If you have questions or would like more information, please don’t hesitate to contact me.
College Park Rd – Berkeley Farms Rd – Goose Creek City Council voted to annex 11 parcels of land totaling 36.25 acres on College Park Road and Berkeley Farms Road. The development plan will include single-family detached dwelling units as well as some multi-family units with 5 acres designated for open space with connected trails and walking paths.
Windsor Mill Road and Goose Greek Boulevard (Hwy 52) – Developers plan to transform this vacant corner into a mixed-use development. SoLiv at Goose Creek plans to encompass 30 acres, with the land assembled from multiple parties organized by a local developer. The preliminary plans consist of 42,000 square feet of commercial and retail space, with 130 active adult residential units and 300 multifamily units.
A Berkeley County property owner can peek through a stand of trees across the road and see part of Cane Bay Plantation. The other side of his land overlooks 1,700 acres of undeveloped land where Seattle-based Weyerhaeuser, the nation’s largest timber tract owner, wants to build another large-scale residential project.
Mr. Burbage Smoak’s property along the heavily traveled, two-lane Black Tom Road stands in the way of any plans Weyerhaeuser might have and Berkeley County Council appears determined to keep it that way.
Smoak’s vacant property includes 421 acres southwest of Moncks Corner, most of it is wetlands. However, He wants to build a strip of commercial buildings on 80 acres that front Black Tom Road — maybe some medical offices or retail space, something that will “support the residents of that area,” according to Kevin Berry, president of Earthsource Engineering, who is representing the landowner.
“We’re not just trying to put more residential rooftops in the area,” he said, adding he’s keenly aware of county council’s desire to slow residential growth so new roads and other critical infrastructure can catch up.
“The public sentiment, and they’ve articulated it well, is there’s frustration when development comes before infrastructure,” said county supervisor Johnny Cribb.
South Carolina is among a handful of Sunbelt states where growth is pulling away from the rest of the country, and one of the region’s top economists says there doesn’t seem to be anything on the horizon to stem the acceleration.
“I don’t see anything in the data that makes me think that growth in the Carolinas, in particular, is going to slow down,” Laura Ullrich, a Charlotte-based economist with the Federal Reserve Bank of Richmond, said during the S.C. International Trade Conference on the Isle of Palms.
The lures that have drawn newcomers from other states — jobs, weather and relatively lower costs — aren’t going to change, Ullrich said. Already, South Carolina ranks as the nation’s fastest-growing state percentagewise, with 1.7 percent growth in 2023, according to census data. That’s nearly 91,000 more people than the previous year, with roughly 19,000 of them moving to the three-county Charleston region.
“And, quite frankly, we still have several mid-sized metros that have a lot of growing to do,” Ullrich said
“If you live in Charleston, things seem super expensive here,” she said. “But it’s a lot cheaper than a house in Fairfax County, Virginia, and a heck of a lot cheaper than San Diego. So, if you look at the areas where that migration is coming from, they are very expensive. Yes, it’s expensive to buy a house in Mount Pleasant. But if you move from San Diego, you might buy a house in Mount Pleasant and another on Lake Murray.”
At the same time, wages are often much lower in South Carolina, and that can amplify the housing crisis regardless of cost comparisons.
“Everybody is worried about housing,” Ullrich said. “The only ways to fix it are, basically, subsidies and density. And people don’t want to talk about density. It’s really hard because everyone wants affordable housing but when density is going up down the road, people complain to their city, and they don’t do it.”
There are a few intangible variables that could crimp growth, such as rising geopolitical tensions or a surprise event that no one can forecast. But Ullrich said the biggest question is how quickly the Fed will lower interest rates going forward.
“Is it going to be an elevator or slow stair steps?” she said.
The answer could go a long way in determining how the housing crisis — both affordability and availability — shakes out in the Charleston region and throughout the Sunbelt.
Nexton, recently announced the addition of Stanley Martin Homes, to the community’s builder program. With plans to develop a collection of townhomes and condos, this project is one of several Stanley Martin developments launching in the Charleston area.
Nexton ranks among the best-selling communities in the nation and boasts a variety of neighborhoods that feature local and national builders and include a diverse array of homes.
Nexton has established itself as a live-work-play destination that features dining, shopping, services and hospitality. Nexton has delivered over 500,000 square feet of office space and offers conveniences such as sought-after schools, grocery stores, modern infrastructure, 20 miles of trails and 2,000 acres of green space.
The $510 million land deal for the undisclosed business that I posted about in October 2023 has been revealed. Internet giant Google confirmed Feb. 15 that it is planning to build a $510 million data center at the Pine Hill Business Campus west of Summerville — the company’s second in the Charleston region.
The project has received historic tax breaks from Dorchester County and a discount electricity deal from Dominion Energy. Google also has not said when it will begin construction or how many jobs it will create at the 231-acre site along Highway 17A.
The Pine Hill data center will join another that the company completed in 2007 at Mount Holly Commerce Park off Highway 52 near Moncks Corner in neighboring Berkeley County.
Google, going by the aliases Project Evergreen and Gannett Enterprises LLC, has also purchased 206 acres for a proposed third data center near the county’s Winding Woods Commerce Park along Highway 78. The company said it only plans to develop the Pine Hill project for now but will hold onto the other land near the town of St. George for potential future needs according to business demands.
The sale of the properties had not been recorded with the Register of Deeds as of Friday (2-16-24)
Members of Dorchester County Council have said the Pine Hill data center is expected to generate about $2 million a year in new revenue and they have praised Google’s community involvement, including providing free laptops to local schools.
Are you feeling a bit unsure about what’s really happening with mortgage rates? That might be because you’ve heard they’re coming down. But then you read somewhere else that they’re up again. And that may leave you scratching your head and wondering what’s true.
The simplest answer is: that what you read or hear will vary based on the time frame they’re looking at. Here’s some information that can help clear up the confusion.
Mortgage Rates Are Volatile by Nature
Mortgage rates don’t move in a straight line. There are too many factors at play for that to happen. Instead, rates bounce around because they’re impacted by things like economic conditions, decisions from the Federal Reserve, and so much more. That means they might be up one day and down the next depending on what’s going on in the economy and the world as a whole.
Take a look at the graph below. It uses data from Mortgage News Daily to show the ebbs and flows in the 30-year fixed mortgage rate since last October:
If you look at the graph, you’ll see a lot of peaks and valleys – some bigger than others. And when you use data like this to explain what’s happening, the story can be different based on which two points in the graph you’re comparing.
For example, if you’re only looking at the beginning of this month through now, you may think mortgage rates are on the way back up. But, if you look at the latest data point and compare it to the peak in October, rates have trended down. So, what’s the right way to look at it?
The Big Picture
Mortgage rates are always going to bounce around. It’s just how they work. So, you shouldn’t focus too much on the small, daily changes. Instead, to really understand the overall trend, zoom out and look at the big picture.
When you look at the highest point (October) compared to where rates are now, you can see they’ve come down compared to last year. And if you’re looking to buy a home, this is big news. Don’t let the little blips distract you. The experts agree, overall, that the larger downward trend could continue this year.
Despite the ups and downs, many analysists predict mortgage rates will, over-all, move in a slow declining path as the year progresses, but many factors can influence the trajectory and so only time will tell.
if you’re looking to buy a home, you’ve probably been paying close attention to mortgage rates. Over the last couple of years, they hit record lows, rose dramatically, and are now dropping back down a bit. Ever wonder why?
The answer is complicated because there’s a lot that can influence mortgage rates. Here are just a few of the most impactful factors at play.
Inflation and the Federal Reserve
The Federal Reserve (Fed) doesn’t directly determine mortgage rates. But the Fed does move the Federal Funds Rate up or down in response to what’s happening with inflation, the economy, employment rates, and more. As that happens, mortgage rates tend to respond. Business Insider explains:
“The Federal Reserve slows inflation by raising the federal funds rate, which can indirectly impact mortgages. High inflation and investor expectations of more Fed rate hikes can push mortgage rates up. If investors believe the Fed may cut rates and inflation is decelerating, mortgage rates will typically trend down.”
Over the last couple of years, the Fed raised the Federal Fund Rate to try to fight inflation and, as that happened, mortgage rates jumped up, too. Fortunately, the expert outlook for inflation and mortgage rates is that both should become more favorable over the course of the year. As Danielle Hale, Chief Economist at Realtor.com, says:
“[Mortgage rates will continue to ease in 2024 as inflation improves . . .”
There’s even talk the Fed may actually cut the Fed Funds Rate this year because inflation is cooling, even though it’s not yet back to their ideal target.
The 10-Year Treasury Yield
Additionally, mortgage companies look at the 10-Year Treasury Yield to decide how much interest to charge on home loans. If the yield goes up, mortgage rates usually go up, too. The opposite is also true. According to Investopedia:
“One frequently used government bond benchmark to which mortgage lenders often peg their interest rates is the 10-year Treasury bond yield.”
Historically, the spread between the 10-Year Treasury Yield and the 30-year fixed mortgage rate has been fairly consistent, but that’s not the case recently. That means, there’s room for mortgage rates to come down. So, keeping an eye on which way the treasury yield is trending can give experts an idea of where mortgage rates may head next.
Bottom Line
With the Fed meets, experts in the industry will be keeping a close watch to see what they decide and what impact it’ll have on the economy.
Real Estate Matters in Charleston SC - Gena Glaze 