Homebuyers across Myrtle Beach, Carolina Forest, and the entire Grand Strand are asking the same question heading into the new year: Will mortgage rates finally break lower in 2026 — and if so, should you build or buy?
After two years of roller-coaster borrowing costs, a shifting inflation landscape, and steady price growth across South Carolina, the outlook for early 2026 is more hopeful than what we saw in 2023–2024. But the decision to build or buy isn’t just about rate predictions. It’s also tied to local inventory, construction trends, neighborhood demand, lifestyle plans, and the market data that paints a clear picture of what’s coming next.
Let’s break down what the latest reports reveal and how that affects your next move along the Grand Strand.

What We Know About Mortgage Rate Trends Going Into 2026

The South Carolina REALTORS® Annual Housing Report shows that buyers and sellers remained highly sensitive to rate swings throughout 2024, with mortgage rates bouncing between 6% and over 7%. While national rates dipped as low as 6.08% in September 2024, they still pushed many buyers to the sidelines earlier in the year, stalling the typical spring surge.

Into 2025, economists projected a “more active housing market,” expecting rates to stay generally in the 6–7% range but begin easing as inflation continued to cool and Fed cuts took effect.

By late 2025, those expectations largely materialized, paving the way for early 2026 to potentially sit in the mid-5% to low-6% range depending on inflation progress and economic stability.
For Myrtle Beach buyers, even a half-percent drop translates into tens of thousands saved over the life of a loan — especially on new-construction homes priced between $350K and $550K, a popular range across the Coastal Carolinas region.

What Falling Rates Would Mean for Home Prices in Myrtle Beach

Even with fluctuating rates, South Carolina home prices continued climbing in 2024, with the statewide median reaching $335,500 — up 3.2% from 2023. Coastal Carolinas saw similar growth, with the median price edging to $330,000.

Why does this matter?

Because when rates fall, two things typically happen:

Demand increases

More buyers re-enter the market, especially first-timers and move-up buyers who paused due to affordability concerns.

Prices increase or accelerate

Even with inventory gains in 2024 (+19.8% statewide), demand has consistently outpaced supply in popular coastal areas.

In Myrtle Beach specifically, where new construction remains strong and condo sales make up a significant share, lower rates could push more buyers back into neighborhoods like:

• Carolina Forest (The Farm, Waterbridge, Plantation Lakes)

• Market Common

• Grande Dunes

• Little River & North Myrtle Beach communities

• Surfside and Murrells Inlet new-build pockets

If you’re waiting for rates to fall before acting, you may face higher home prices by the time you’re ready. The key is timing your strategy.

Should You Build in Early 2026?

Building becomes particularly attractive when the market is:

• Seeing inventory improvements

• Offering more builder incentives

• Experiencing potential rate drops

• Facing steady, predictable price growth, not volatility

The 2024 report noted an ongoing increase in single-family and multifamily construction, a trend expected to continue.

Benefits of building in early 2026

1. More control over timing
Signing early allows you to take advantage of rate-lock programs or “float-down” options if rates drop later in 2026.

2. Upfront inventory advantage
Even with increased supply, Myrtle Beach remains competitive — building eliminates bidding wars.

3. More predictable costs
Builders in the Grand Strand often offer incentives such as closing cost credits, design center allowances, or rate buydowns.

4. Personalization
In master-planned communities like Carolina Forest and Market Common, you have flexibility in floorplans, energy-efficiency options, and lifestyle-oriented layouts.

When building might not be ideal

If your move timeline is under 3–4 months or you need to minimize upfront costs (down payment + structural options), an existing resale may make more sense.

Should You Buy in Early 2026?

Existing-home buyers get instant access, mature landscaping, and lower initial costs. With active listings up nearly 20% in 2024, inventory has begun shifting back toward balance.

Why buying may be advantageous in early 2026

1. Price stability
   Price growth has moderated across most areas, including Coastal Carolinas’ +2.5% increase. This signals a market that’s steadier, not overheated.

2. More selection
   Condos made up 32% of Coastal Carolinas sales, giving buy-ready shoppers abundant options from Cherry Grove to Surfside.

3. Lower competition — for now
   If rates drop sharply in 2026, buyers will rush in. Shopping before the rush can secure better terms.

4. Negotiation room
   With sales pacing slower in some categories (e.g., 2-bedroom units), buyers may find greater flexibility than during the 2021–2022 boom.

Build or Buy? How to Structure the Decision Strategically

Choose to build if:

• You want to lock in pricing before rate drops spark demand

• You prefer new construction communities like Carolina Forest

• You need a long-term layout solution (multi-gen, WFH office, etc.)

• You want incentives or concessions

• You plan to stay put for 5+ years

Choose to buy if:

• You want to move within 90 days

• You want a mature neighborhood close to the beach

• You’re searching along the Grand Strand condo corridor

• You want flexibility to refinance if rates slide later in 2026

• You want lower upfront costs

What Myrtle Beach Buyers Should Do Between Now and January 2026

Here’s your action plan to stay ahead of rate changes:

1. Get pre-approved now

Lock in today’s rate — you can refinance later if 2026 comes in lower.

2. Visit neighborhoods proactively

Focus on:

• Carolina Forest for newer builds

• The Market Common for walkability

• Murrells Inlet for lifestyle living

• Little River for affordability and space

3. Track builder incentives

Some expire at year-end, and early 2026 may bring a new wave of promotions.

4. Consider a rate-lock with float-down

Gives protection both ways.

5. Work with a local Myrtle Beach expert

Local data beats national headlines — especially when the Grand Strand behaves differently than the rest of the U.S.

If you’re thinking about building or buying in Myrtle Beach heading into 2026, the best move is to get clarity now — before rates shift again. Carolina Crafted Homes helps buyers navigate local trends, new-construction options, incentives, and neighborhood insights tailored to your budget and timeline.
Schedule your no-pressure consultation today, and let’s map out your best path before the market heats up.

FAQs

1. Will mortgage rates really drop in early 2026?

Most economists expect modest rate relief entering 2026 due to cooling inflation and prior Fed cuts. Even a small dip into the mid-5% or low-6% range can improve affordability for Myrtle Beach buyers. However, falling rates often trigger demand surges, so timing your search early in the year can help you stay ahead of competition.

2. Is it better to build a home when rates are dropping?

Building can be a strong strategy in a declining-rate environment because you can lock a rate during construction, then use a float-down if rates drop further. Myrtle Beach builders also tend to offer incentives in slower months. If you want customization and predictable costs, building before the market heats up may be ideal.

3. Are home prices in Myrtle Beach expected to rise in 2026?

South Carolina home prices have risen steadily for years, including a 3.2% statewide increase in 2024. Coastal Carolinas also showed positive growth. If rates fall in 2026, buyer activity will likely accelerate, which historically puts upward pressure on prices. Acting sooner helps you avoid the spring rush.

4. How does inventory affect my build or buy decision?

Inventory improved nearly 20% in 2024 statewide, giving buyers more choices. However, popular Myrtle Beach neighborhoods — especially Carolina Forest and Market Common — still move quickly. If you need a specific layout or location, building ensures availability. If you want move-in ready convenience, increased resale inventory is working in your favor.

5. Will Myrtle Beach condos be a good option in 2026?

Yes — condos make up over 30% of Coastal Carolinas sales, offering ample selection across the Grand Strand. If you’re seeking affordability, low maintenance, or a second home, condos remain one of the region’s most flexible options. Watch for early-year listings when snowbirds and investors start releasing inventory.