The Federal Reserve has officially made its move—cutting interest rates for the first time this year. While national headlines focus on broader economic trends, this shift has direct implications for buyers and sellers right here in Charleston and Columbia. Lower borrowing costs could be the spark that reignites activity across both markets.
What Just Happened:
- The Fed lowered rates by 0.25 percent—the first cut of the year
- New target range: 4.00 to 4.25 percent
- Mortgage rates are beginning to trend downward
- Two additional cuts are possible before year-end
What This Means for Buyers in Charleston and Columbia:
Let’s look at a realistic scenario. On a $350,000 home, the difference between a 7 percent and a 6 percent mortgage rate can mean over $82,000 in savings over the loan term.
Monthly payment comparison:
- 7 percent rate: around $2,390 per month
- 6 percent rate: around $2,160 per month
- That’s a monthly savings of $230 with just a 1 percent rate drop
Smart Strategy: Buy Now, Refinance Later
Many buyers are holding out for lower rates, but waiting too long could mean entering a much more competitive market. Home prices in both Charleston and Columbia have shown resilience, and competition could heat up again quickly.
Here’s a better strategy:
- Buy now while sellers are still open to negotiation
- Refinance later as rates continue to decline
- Benefit from rising home values over the next 12 to 24 months
- Lock in your home before bidding wars return
For Sellers in Charleston and Columbia:
Lower interest rates often bring sidelined buyers back into the market. Sellers who act early—before inventory increases—can benefit from:
- Increased buyer traffic
- Quicker sales timelines
- Fewer price adjustments
- Potential for stronger offers
Timing Is Everything
This kind of market shift can gain momentum quickly. A modest rate drop is often enough to reengage buyers who’ve been sitting on the sidelines. Whether you’re buying or selling, the early movers often gain the advantage.
If you’re buying, consider acting now to secure the best value before prices climb.
If you’re selling, this could be the right moment to list before competition increases.
The Kauffman Group has been helping clients navigate the Charleston and Columbia markets for more than 10 years. Whether you’re looking to move across town or across the state, our team is here to guide you with experience, insight, and local knowledge that make all the difference.
