30 Year Mortgage Rates – South Carolina

If you’re looking for a 30-year mortgage rate to buy a home in South Carolina, it’s a great time to buy!

In a recent survey conducted by GoBankingRates, the state ranked 17th in the nation for the lowest average home mortgage. The study combined 30-year fixed, 15-year fixed and five-year ARMs (adjustable rate mortgages) to rank each state by the average cost of a mortgage.

Differences in 30 Year Mortgage Rates

So, what makes 30-year mortgage rates in South Carolina different from other states? There are a number of reasons including:

  • Economic factors. Lending is riskier in some states than others due to unemployment rates, default and foreclosure rates and differing property values.
  • State laws. States that allow recourse typically have lower mortgage rates. Recourse is the recovery of additional money from borrowers who default and the foreclosure sale doesn’t earn enough to pay off the mortgage.
  • Size of competition. More lenders competing for your business means lower costs.
  • Types of preferred loans. States with more military bases will likely see more VA loans, states with more rural housing might have more USDA loans, etc.

That’s why South Carolina’s 30-year mortgage rates may differ from other states. But what makes mortgage rates change from one day to the next?

  • Economy. Changes in economic growth, the federal fund rate, Consumer Price Index and Producer Price Index can all affect mortgage rates literally overnight.
  • Market conditions. An increase or decrease in home building and sales regionally or nationally can drive interest rates up or down.
  • Forecasts. Lenders set their interest rates based on a forecast of both short and long-term economic trends in an effort to keep their mortgage rates ahead of growth and decline.
  • Government. Government policies like the Federal Reserve can dictate the fluctuation of interest rates.

As you can see, there are a number of reasons why a 30-year mortgage rate in South Carolina can vary. Learn about First Bank’s mortgages and how we can help you call South Carolina home.

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