Columbia, SC Housing Market, Fall 2026: What 7% Rates Mean for Buyers

Where mortgage rates stand right now

Freddie Mac's weekly survey put the average 30-year fixed mortgage at 7.32% for the week of October 22, 2026, down from 7.40% the week before. That was the first weekly drop after a seven-week climb that started near 6.65% in late August. A year ago, the same average was 6.19%. The 15-year fixed averaged 6.68%.

The Federal Reserve meets October 27 and 28. Fed decisions and mortgage rates are related, but the Fed does not set mortgage rates directly, so nobody can promise where rates go next. Plan around the rate you can get today, not a guess about next month.

What higher rates have done to the Columbia market

Higher rates have pulled some buyers to the sidelines, and the Columbia numbers show it:

• More choices. Realtor.com counted 3,111 active listings in the Columbia metro in August 2026, up 14.8% from a year earlier.
• More price cuts. About 24.7% of listings had a price reduction, and the median list price was about $301,600, down 2.8% from last year.
• More time to decide. Median days on market rose to 53 for listings, and Redfin reported homes in the city of Columbia taking about 40 days to sell, 8 days longer than a year earlier.
• Room to negotiate. Redfin's August data showed Columbia homes selling for about 98.3% of list price on average, so roughly 1.7% under asking.

Prices have not crashed. Redfin's median sale price for the city was about $278,800, up 1.2% from last year. What has changed is leverage. In 2021 and 2022, buyers waived inspections to compete. Today, many sellers are the ones making concessions.

The real cost: what 7.32% means for your payment

On a $280,000 home with 10% down, a $252,000 30-year loan at 7.32% is about $1,731 a month in principal and interest. At last year's 6.19% average, the same loan would be about $1,542. That is roughly $189 a month, before taxes and insurance.

That gap is real, but it can be smaller than it looks once you negotiate. A 2% price reduction on a $280,000 home is $5,600. Many sellers in this market will also consider paying part of a buyer's closing costs or helping fund a rate buydown, which can lower your payment for the first few years or for the life of the loan. Every lender and loan program handles this differently, so ask your lender to show you the numbers side by side.

How smart buyers are using this market

• Get pre-approved first. A strong pre-approval makes your offer easier for a seller to say yes to, even when you are asking for concessions.
• Look at homes that have sat. A listing past 30 to 45 days, or one that already cut its price, often has the most flexible seller.
• Ask for help with costs, not just price. Depending on your loan, seller-paid closing costs or a buydown can save you more each month than a small price cut.
• Keep your protections. In this market you usually do not have to waive inspections or shorten your due diligence period to compete.
• Be careful with "just refinance later." Refinancing may help if rates fall, but it is not guaranteed and it has costs. Buy a payment you are comfortable with today.

Moving to South Carolina from out of state?

For buyers relocating from higher-cost states, the Midlands still stands out. Columbia's median sale price is well below what many New York, California, and Northeast buyers are used to, and South Carolina's 4% legal residence property tax rate on a primary home keeps carrying costs lower once you apply for it. Our guide to buying a South Carolina home from out of state walks through the whole process.

Talk with a local agent

Our Midlands agents are writing offers in this market every week, in Columbia, Lexington, Irmo, Chapin, and Blythewood. Tell us about your move and we will help you build a plan, whether you are ready to tour this month or just starting to research.

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