North Carolina Mortgage and Refinance Rates

Current mortgage rates in North Carolina

As of Thursday, September 26, 2024, current interest rates in North Carolina are 6.21% for a 30-year fixed mortgage and 5.35% for a 15-year fixed mortgage.

The median home sale price in the state was up 1.6 percent year-over-year as of July 2024, according to NC Realtors, the state’s Realtor group. Buying activity, while down from June, is about in line with the market a year ago, at a slight 0.3 percent decline. Available inventory of homes, on the other hand, has risen nearly 23 percent year-over-year. 

As the back half of 2024 approaches, buyers in the state are seeing some promising signs: Available inventory is climbing while 30-year mortgage rates are dropping.  

Refinance rates in North Carolina

Refinance rates are beginning to ease from post-pandemic highs. If you bought your home within the last year and locked in a mortgage rate between 7 and 8 percent, refinancing might make sense in the near future. The number of refinanced loans jumped by more than 5 percent in June 2024 versus the year prior, according to ATTOM Data Solutions.

If you’ve owned your property for a long time in the Tar Heel State, you likely have more equity thanks to the recent runup in housing valuations. If you’re looking to accomplish other goals, such as remodeling that home, you may be able to use a cash-out refinance to put that equity to good use. 

North Carolina mortgage rate trends

Mortgage rates are difficult to predict, but most economic experts believe the Federal Reserve will begin cutting rates this fall. If that happens, mortgage rates will drop. However, that can also create a challenge if you’re trying to buy: If other buyers are excited about lower rates, you may wind up dealing with some steep competition to purchase a home in North Carolina. 

Speaking of competition, it’s already fairly hot in some parts of the state. In Charlotte, for example, Redfin data from July 2024 shows that the typical home receives three offers, while Raleigh homes typically receive two offers and sell in just 19 days.

National mortgage rates by loan type

Mortgage statistics for North Carolina

North Carolina’s housing markets and home values vary widely, from the metro areas of Charlotte and Raleigh-Durham to the coastal vibe of the Outer Banks to the mountainous region around Asheville. Use the statistics below as an entry point, but research more about how quickly homes are selling — and for how much – in the local market where you’re browsing.

• Median home sales price, July 2024: $370,000
• Housing inventory, July 2024: 22.6% higher YoY
• County with the highest median home value: Dare ($641,100, June 2024)
• County with the lowest median home value: Halifax ($105,900, June 2024)
• Homeownership rate, Q4 2023: 66.9% 
• Median down payment, June 2024: $73,000

Sources: NC Realtors, U.S. Census Bureau, ATTOM

Mortgage options in North Carolina

As of July, more than 82,000 homes have been purchased in North Carolina in 2024, according to ATTOM Data Solutions. Whether you’re hoping to buy a beachside condo in Wilmington, a home in a college town like Raleigh or Chapel Hill or an estate somewhere in tobacco country, you’ve got many options to borrow the funds, including:

• North Carolina conventional mortgages: To qualify for a conventional mortgage, you’ll need a minimum credit score of 620 and a debt-to-income (DTI) ratio of no more than 45 percent. If you make a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI), as well.
• North Carolina FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to obtain a loan insured by the Federal Housing Administration (FHA). If you have a down payment of at least 3.5 percent, you could qualify for this loan type with a credit score as low as 580. 
• North Carolina VA loans: If you’re a veteran or active-duty member of the military, you might qualify for a mortgage guaranteed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee, which ranges from 1.25 percent to 2.15 percent for first use.
• North Carolina jumbo loans: The conforming loan limit across the Tar Heel State is the same, no matter what county you’re considering as a buyer: $766,550. If you’re looking to buy a high-priced luxury property and need to borrow more than that amount, you'll have to compare lenders that offer jumbo loans. And before you do, you’ll want to get your credit in the best shape possible — at least a 680 score — and have at least a 10 percent down payment.

First-time homebuyer programs in North Carolina

The North Carolina Housing Finance Agency (NCHFA) helps connect first-time homebuyers to low-interest mortgages and no-interest down payment assistance loans, including:

• NC Home Advantage Mortgage and down payment assistance: A fixed-rate mortgage for borrowers with a credit score of at least 640 and an income of no more than $140,000; can be used for single-family homes or duplexes, or condos or townhomes; can be coupled with forgivable down payment assistance up to $15,000
• NC Home Advantage Tax Credit: A mortgage credit certificate (MCC) that allows borrowers to claim a federal tax credit for 30 percent of the mortgage interest every year, up to $2,000.

How to find the best mortgage rate in North Carolina

• Step 1: Strengthen your credit score - Long before you start looking for a mortgage lender or applying for a loan, give your finances a checkup, and improve your credit score if needed.
• Step 2: Determine your budget - To find the right mortgage, you’ll need a good handle on how much house you can afford.
• Step 3: Know your mortgage options - There are a few different types of mortgages.
• Step 4: Compare rates and terms from several lenders - Rate-shop with at least three different banks or mortgage companies to find the best deal.
• Step 5: Get preapproved for a mortgage - Getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation.

Additional North Carolina mortgage resources

• North Carolina loan limits by county: Learn the conforming loan limit for your city or town.
• North Carolina mortgage lenders: Explore mortgage lenders in your state.
• North Carolina housing market overview: Know what to expect as a homebuyer or seller in North Carolina.
• How to buy a house in North Carolina: Understand the process of buying a home in your state.
• Homeowners insurance in North Carolina: Compare policies from a variety of providers.
• Mortgage calculator: Calculate possible mortgage payments to estimate what to expect.

Meet our Bankrate experts

Written by: Jeff Ostrowski, Principal Reporter, Mortgages

I cover mortgages and the housing market. Before joining Bankrate in 2020, I spent more than 20 years writing about real estate and the economy for the Palm Beach Post and the South Florida Business Journal. I’ve had a front-row seat for two housing booms and a housing bust. I’ve twice won gold awards from the National Association of Real Estate Editors, and since 2017 I’ve served on the nonprofit’s board of directors.

Read more from Jeff Ostrowski

Edited by: Laurie Dupnock, Editor, Home Lending

I’ve spent five years in writing and editing roles, and I now focus on mortgage, mortgage relief, homebuying and mortgage refinancing topics. I’m most interested in providing resources for aspiring first-time homeowners to help demystify the homebuying process. In 2021, I earned a Poynter ACES Certificate in Editing. I have an MA in English. 

Read more from Laurie Dupnock