HONOLULU (HI Now) - The summer housing market in Hawai’i is buzzing with activity, and Central Pacific Bank (CPB) is here to help you make sense of it all. Whether you’re buying your first home or refinancing, staying informed about mortgage rates and market trends is crucial.
What’s the Current Mortgage Rate Situation?
According to Rusty Rasmussen of CPB, mortgage rates have been on a rollercoaster ride this year. They started in the low 6% range, spiked after recent tariff announcements, and have settled back into the mid-6% range—actually a bit lower than where we were this time last year. For May specifically, rates have been moving up and down but ended the month trending lower.
Rusty explains that rates are tied to the bond market, which has been jittery about tariffs and trade policy. Until there’s more clarity in economic data, we’re likely to see rates hover around current levels.
How Can Buyers Lower Their Monthly Payments?
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There’s good news for buyers—several strategies can help reduce monthly payments:
- Paying points at closing to “buy down” the interest rate
- Exploring buydown programs and adjustable-rate loans
- Discussing all options with your lender to find the best fit
Forecast for the Rest of the Year
While predicting interest rates is tough (“my crystal ball is very foggy,” jokes Rusty), he expects rates could come down a bit by year’s end. Not a huge drop, but enough to give some relief.
Busy Season for Homebuyers
CPB is seeing an active housing market this summer. More listings and new construction projects mean buyers have more choices. Many have accepted the current rate environment, moving forward instead of waiting for lower rates that might never come.
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Key Advice for Homebuyers
- Don’t Obsess Over Rates: They change daily, and trying to predict them is stressful.
- Do Your Due Diligence: High-rise condos in Hawai’i can be tricky—ensure buildings have hurricane insurance and no major deferred maintenance.
- Act Now: The biggest regret from past buyers? Wishing they’d acted sooner.
For a smooth homebuying experience, reach out to a CPB loan officer who will guide you from pre-qualification to closing. Ready to see how Central Pacific Bank can help you reach your financial goals? We got you – visit cpb.bank today!
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