Coastal Carolina Housing Market Shifts to Affordability Focus

BRUNSWICK COUNTY, NC – December 16, 2025 – In the high-growth coastal communities of North Carolina, a significant recalibration of the housing market is underway. As national mortgage rates show signs of stabilizing after a volatile period, a dramatic pivot towards affordability is reshaping how residents buy homes. New data from Brunswick County reveals an unprecedented surge in the use of government-backed loans, signaling that the dream of homeownership is becoming accessible again for a broader segment of the population, even in one of the state's most desirable and rapidly appreciating areas.

This local trend, detailed in a report by Motto Mortgage Professionals, points to a market moving away from the investor-driven frenzy of recent years and towards a more sustainable model centered on primary homebuyers.

The National Picture: A Breather for Buyers

The shifts occurring in Brunswick County are not happening in a vacuum; they are a direct response to a changing national financial landscape. After peaking near 7.05% in early 2025, the average 30-year fixed mortgage rate has gradually eased, now hovering in the low-to-mid 6% range. This welcome relief for prospective buyers follows a series of three benchmark rate cuts by the Federal Reserve in 2025, a policy move aimed at supporting economic growth as inflation moderates.

While forecasts from institutions like the Mortgage Bankers Association and Fannie Mae vary slightly, the general consensus points toward a period of relative stability, with rates expected to remain in the 6% to 6.5% range through 2026. According to housing economists, this stability may be more important than the rate reduction itself. A predictable rate environment allows buyers who have been sidelined by uncertainty to re-enter the market with more confidence, enabling them to budget effectively and make long-term financial plans. This newfound stability is the key that is unlocking pent-up demand across the country, with coastal markets like Brunswick County feeling the effects acutely.

A Surge in Accessibility-Focused Financing

The most compelling evidence of this market transformation lies in the specific loan products buyers are now using. The data shows a massive migration toward financing options designed to lower the barrier to entry for homeownership.

While conventional loan sales saw a modest 8% increase and cash sales dipped slightly by 1.71%, the growth in government-backed mortgages was explosive. Sales using Federal Housing Administration (FHA) loans, which are popular among first-time buyers for their low 3.5% down payment requirement and flexible credit criteria, skyrocketed by 35.96% year-over-year.

Even more dramatic was the use of U.S. Department of Agriculture (USDA) loans. These loans, which offer zero-down financing for homes in designated rural and suburban areas, jumped by a remarkable 106.25%. This indicates a powerful demand in the outlying communities of Brunswick County, where families are finding pathways to homeownership that were previously out of reach.

Furthermore, loans guaranteed by the Department of Veterans Affairs (VA) also saw substantial growth, rising by 30.00%. This program continues to be a vital benefit for veterans and active-duty service members, often allowing them to purchase a home with no down payment.

"This data clearly illustrates how crucial FHA, VA, and USDA financing are to the American Dream, particularly in desirable coastal regions," said James Barmore, Branch Manager at Motto Mortgage Professionals. "In an environment where national conversations center on housing affordability, this surge in specialized loan products shows that buyers are actively utilizing every available tool to purchase homes in markets that have seen significant appreciation, like Brunswick County."

Investors Step Back as Primary Buyers Step In

In stark contrast to the boom in accessibility-focused loans, financing types often associated with speculative or niche investment activity have plummeted. This suggests a significant cooling of the investor-driven demand that contributed to rapid price hikes in recent years.

Seller financing, where the property owner acts as the lender, fell by 44.44%. More telling is the 45.71% collapse in construction-to-permanent loans, signaling that both developers and buyers may be pulling back from speculative new builds amid higher construction costs and a renewed focus on existing housing stock.

Activity from real estate investors also appears to be waning. The use of 1031 exchanges, a tax-deferment tool that allows investors to roll profits from one property sale into another, decreased by 6.25%. While a smaller decline, it aligns with the broader trend of a market shifting away from investment properties and back toward primary residences.

"These figures suggest a cooling of investment-driven sales and a return to primary residence transactions," noted Stuart Champion, Senior Loan Officer at Motto Mortgage Professionals. "This is an encouraging sign for local residents as national experts forecast a more balanced housing market in the coming year." This rebalancing reduces competition for local families and individuals, potentially easing upward pressure on home prices and fostering a more stable community environment.

A Blueprint for a More Balanced Market?

The trends unfolding in Brunswick County may offer a glimpse into the future of the national housing market. As the market pivots from the volatility of the past few years, the combination of stabilized interest rates and robust government loan programs appears to be creating a healthier, more balanced ecosystem.

This shift could also help mitigate the "lock-in effect," a phenomenon where existing homeowners with ultra-low mortgage rates from previous years have been hesitant to sell and move. As people acclimate to the new normal of rates in the 6% range and life events necessitate a change, more homes are expected to come onto the market, gradually improving inventory levels.

However, significant challenges to affordability remain. The chronic undersupply of housing, a long-term issue noted by Federal Reserve officials, cannot be solved by interest rate policy alone. Substantial increases in housing construction are still needed to meet demand and make a lasting impact on prices.

For now, the powerful performance of government-backed mortgages in a popular destination like Brunswick County serves as a potent indicator. It demonstrates that as financial conditions stabilize, specialized financing is the essential mechanism unlocking inventory and restoring access to homeownership for American families, paving the way for a more sustainable and equitable housing market.