Mortgage Rates May Improve for Islands

\r\nHawaii is known for lush landscapes, tropical beaches and relaxation. In the mortgage industry, however, it is known for high cost closings and large loan amounts. The Hawaiian mortgage market has felt the pinch of a cooling market and high rates, but is now hopeful that, as the nation cools in the market, the islands will get a break. Freddie Mac reports that the average rate for a fixed mortgage has fallen to 6.55%, the lowest the nation has seen since April.\r\n

That means that Hawaii is seeing a downward turn in rates as well, since the average for the islands is now 6.125% for a fixed rate mortgage. The break is a welcome one, since housing values are among the highest in the nation within the island state. The nation is still maintaining high home values, reflected in the fact that Hawaii’s average single family home sells for $700,000, almost triple the national average. Lower rates would mean more business, a situation that is dire in a market where homes have been sitting on the market for months.\r\n