North Carolina Mortgage Rates for May 2019

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In North Carolina, the average rate on a 30-year mortgage is 4.41%. 15-year home loans in the state average 3.95%, while 5/1 adjustable-rate mortgages (ARM) carry an average initial rate of 4.00%.

Loan typeAverage rateWeekly change3-month change
30-year fixed4.41%+0.00%–0.23%
15-year fixed3.95%–0.01%–0.21%
5/1 ARM4.00%–0.02%–0.18%
Rates for a $200,000 loan with 20% down payment

Homebuyers in North Carolina have dozens of mortgage lenders to choose from, which makes it hard to know which companies offer the best value. We track rates by loan type, lender, and location so you'll know what an affordable quote should look like in the Tar Heel State today.

Best Mortgage Rates in North Carolina

Currently, the best 30-year mortgage rate among North Carolina lenders is 3.75%. Shorter 15-year mortgages start at an average rate of 3.25%, while 5/1 ARM rates go as low as 3.00%.

The mortgage rates you're offered are a reflection of how much risk companies perceive in lending you the money, which means that your credit score and income profile play a large part. However, quotes are also built upon non-personal factors such as the trend in national interest rates and the business goals of each lender.

To provide you with an introduction to the mortgage rate market, we've collected data on the best rates and average rate levels for several popular loan types in North Carolina. We also looked at a profile of rate estimates from some of the state's most popular lenders. Comparing your own quotes to these figures should put you on track to find an offer that's both affordable and realistic.

Current Mortgage Rate Forecast for North Carolina

In early 2019, homebuyers in North Carolina may see home loan rates hold steady or even fall slightly. Though interest rates rose over the latter half of 2018, the Federal Reserve's Open Market Committee (FOMC) announced that it would hold off on further rate hikes until it has a more detailed grasp of the country's economic situation.

Line graph of average U.S. 30-year mortgage rates vs. effective federal funds rate since 2014

At the end of 2018, FOMC committee members voted for an increase of 25 basis points in what is called the target federal funds rate. By bumping this target up to 2.25%-2.50%, the FOMC originally planned to tighten the supply of available credit. Now that the Fed has signaled a temporary hiatus to this plan, borrowers and investors alike may be encouraged to greater levels of activity in the market.

North Carolinians should consider the potential for substantial savings during this period. Regardless of future trends, rates remain historically low compared to levels seen in previous decades. In addition, signs of economic turbulence in the long run make it hard to predict where rates will end up with much certainty.

Rates at North Carolina's Most Popular Mortgage Lenders

While it's relatively easy these days to find mortgage lenders online, a surprising number of consumers still prefer to start their search at the banks they know best. We gathered estimated rates from five of the most popular banks in North Carolina to see if any offers stood out as particularly competitive.

Column graph comparing 30-year mortgage rates at major North Carolina banks

At the time we conducted our study, there was a gap of 37.5 basis points between the highest and lowest mortgage rate estimates at the state's largest banks. For North Carolinians, this indicates that there's a substantial opportunity to save on home financing. That said, rate quotes are always unique to your particular combination of timing, loan details, and lender choice. In such circumstances, the most efficient practice is to cast your net wide for quotes from multiple lenders.

While comparing interest rates is a major part of the mortgage-finding process, that doesn't mean you can focus exclusively on the lowest number you see. The value offered by a mortgage lender isn't measured by rates alone: affordable upfront costs, reliable loan servicing and forthright disclosure are all qualities you should look for as you speak with loan officers.

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Comparing Home Loan Rates by City

In most states, there is little variation in average mortgage rate from city to city. A quick look at the current 30-year rates in North Carolina's major metros confirms that homebuyers have access to similar financing wherever they're located in the state.

MSAAverage mortgage rateMedian home value
Charlotte-Concord-Gastonia4.54%$216,030
Raleigh4.52%$266,708
Greensboro-High Point4.50%$154,945
Winston-Salem4.53%$161,139
Durham-Chapel Hill4.55%$246,137
Average rate is for a 30-year mortgage with a 20% down payment.

Unlike the significant differences we encountered when comparing different banks, North Carolina's cities reported mostly similar mortgage rates. With their 30-year rate averages staying in close range of one another, these areas experience much more variation when it comes to real estate values. While interest rates often track closely on the state and even national level, the value of property is far more tied to its physical location.

Evaluating Your Mortgage Options: An Example in Charlotte

If minimizing your mortgage rate is top priority to you, one way to reliably bring down the rates you're offered is to consider different loan types. Most homeowners find the standard 30-year loan suitable for their needs, but alternatives like the 15-year mortgage and adjustable-rate mortgages (ARMs) can provide substantial savings to those who make the appropriate choices.

To see the differences in play, we can start by imagining a homebuyer in Charlotte who has purchased a new home priced at $200,000 with a 20% down payment. In Charlotte, the average rate of a 30-year mortgage is 4.54%, which translates to monthly principal and interest of $815. Over the course of three decades, the interest on this mortgage would total $133,222.

While most homeowners opt for 30-year home loans, relatively few of them end up sticking around for so long. If our imagined homebuyer plans on moving out in a few years, a 5/1 ARM loan might offer a better deal. 5/1 ARM rates stay fixed at a lower-than-average rate for the first five years, then start moving up or down according to a predetermined index rate. For someone in Charlotte who's settling the loan before the variable rate kicks in, the monthly principal and interest would stay fixed at $764.

If our homebuyer is committed to the long haul, a 15-year mortgage is the best option to reduce lifetime mortgage interest. At the state's average 15-year loan rate, they would pay at least $1,180 per month, but just $52,310 in total interest. A shorter loan term means higher individual payments but far lower costs overall.

In North Carolina, the average rate on a 30-year mortgage is 4.41%. 15-year home loans in the state average 3.95%, while 5/1 adjustable-rate mortgages (ARM) carry an average initial rate of 4.00%.

Loan typeAverage rateWeekly change3-month change
30-year fixed4.41%+0.00%–0.23%
15-year fixed3.95%–0.01%–0.21%
5/1 ARM4.00%–0.02%–0.18%
Rates for a $200,000 loan with 20% down payment

Homebuyers in North Carolina have dozens of mortgage lenders to choose from, which makes it hard to know which companies offer the best value. We track rates by loan type, lender, and location so you'll know what an affordable quote should look like in the Tar Heel State today.

Currently, the best 30-year mortgage rate among North Carolina lenders is 3.75%. Shorter 15-year mortgages start at an average rate of 3.25%, while 5/1 ARM rates go as low as 3.00%.

The mortgage rates you're offered are a reflection of how much risk companies perceive in lending you the money, which means that your credit score and income profile play a large part. However, quotes are also built upon non-personal factors such as the trend in national interest rates and the business goals of each lender.

To provide you with an introduction to the mortgage rate market, we've collected data on the best rates and average rate levels for several popular loan types in North Carolina. We also looked at a profile of rate estimates from some of the state's most popular lenders. Comparing your own quotes to these figures should put you on track to find an offer that's both affordable and realistic.

In early 2019, homebuyers in North Carolina may see home loan rates hold steady or even fall slightly. Though interest rates rose over the latter half of 2018, the Federal Reserve's Open Market Committee (FOMC) announced that it would hold off on further rate hikes until it has a more detailed grasp of the country's economic situation.

Line graph of average U.S. 30-year mortgage rates vs. effective federal funds rate since 2014

At the end of 2018, FOMC committee members voted for an increase of 25 basis points in what is called the target federal funds rate. By bumping this target up to 2.25%-2.50%, the FOMC originally planned to tighten the supply of available credit. Now that the Fed has signaled a temporary hiatus to this plan, borrowers and investors alike may be encouraged to greater levels of activity in the market.

North Carolinians should consider the potential for substantial savings during this period. Regardless of future trends, rates remain historically low compared to levels seen in previous decades. In addition, signs of economic turbulence in the long run make it hard to predict where rates will end up with much certainty

While it's relatively easy these days to find mortgage lenders online, a surprising number of consumers still prefer to start their search at the banks they know best. We gathered estimated rates from five of the most popular banks in North Carolina to see if any offers stood out as particularly competitive.

Column graph comparing 30-year mortgage rates at major North Carolina banks

At the time we conducted our study, there was a gap of 37.5 basis points between the highest and lowest mortgage rate estimates at the state's largest banks. For North Carolinians, this indicates that there's a substantial opportunity to save on home financing. That said, rate quotes are always unique to your particular combination of timing, loan details, and lender choice. In such circumstances, the most efficient practice is to cast your net wide for quotes from multiple lenders.

While comparing interest rates is a major part of the mortgage-finding process, that doesn't mean you can focus exclusively on the lowest number you see. The value offered by a mortgage lender isn't measured by rates alone: affordable upfront costs, reliable loan servicing and forthright disclosure are all qualities you should look for as you speak with loan officers.

Get Multiple Mortgage Offers at Once
Get Multiple Mortgage Offers at Once
LendingTree can help you find and compare mortgage rates, all without affecting your credit.
LendingTree is our ultimate parent company
See Offers

on LendingTree's secure website. NMLS #1136: terms and conditions apply

Powered by
LendingTree is our ultimate parent company

In most states, there is little variation in average mortgage rate from city to city. A quick look at the current 30-year rates in North Carolina's major metros confirms that homebuyers have access to similar financing wherever they're located in the state.

MSAAverage mortgage rateMedian home value
Charlotte-Concord-Gastonia4.54%$216,030
Raleigh4.52%$266,708
Greensboro-High Point4.50%$154,945
Winston-Salem4.53%$161,139
Durham-Chapel Hill4.55%$246,137
Average rate is for a 30-year mortgage with a 20% down payment.

Unlike the significant differences we encountered when comparing different banks, North Carolina's cities reported mostly similar mortgage rates. With their 30-year rate averages staying in close range of one another, these areas experience much more variation when it comes to real estate values. While interest rates often track closely on the state and even national level, the value of property is far more tied to its physical location.

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Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Get Multiple Mortgage Offers at Once
LendingTree can help you find and compare mortgage rates, all without affecting your credit.
See Offers

on LendingTree's secure website. NMLS #1136: terms and conditions apply

Powered by
LendingTree is our ultimate parent company
Get Multiple Mortgage Offers at Once
Get Multiple Mortgage Offers at Once
LendingTree can help you find and compare mortgage rates, all without affecting your credit.
LendingTree is our ultimate parent company
See Offers

on LendingTree's secure website. NMLS #1136: terms and conditions apply

Powered by
LendingTree is our ultimate parent company