There is much competition in the large and diverse mortgage industry of North Carolina State today. At present, the home loans in the state are priced affordably and constitute an active market.

The rise in home/real estate prices in the state have been comparatively lower (less than half) than that of the nation. Fixed rate products and adjustable-rate mortgages i.e. ARMs are the commonly used mortgage types. The 'interest-only' and 'pay option' ARMs are the most popular options of refinance in the state.

In recent times, around 30 percent of all securitized mortgage originations in the state were interest-only owing to the lower home price-to-income ratios and income growth lagging behind home price appreciation. Such interest only mortgages may expose home purchasers to greater repayment risk in the event of interest rate changes.

A recent study shows that the anti-predatory lending law enacted in 1999 has caused a decline in lending among the minority and low income borrowers. Further, it has brought forth negative effects on the availability of credit for all income and racial groups. However, other findings regarding effectiveness of the law are in conflict with this. They indicate that the law is serving its intended purpose i.e. eliminating predatory loans without hurting the lowest-credit borrowers more than others and causing no rise in rates of interest.