Mortgage Rates Are Falling: What Does That Mean for Oahu Buyers and Sellers?

The interest rate on a 30-year fixed-rate mortgage—the most popular U.S. home loan—fell 6 basis points to 6.44% last week, according to the Mortgage Bankers Association. That's the lowest rate since April 2023! Mortgage rates have been trending down since the Federal Reserve's recent indication that they are set to cut interest rates September 18, 2024. Falling rates are welcome news for both buyers and sellers, and create a unique window of opportunity in Hawaii's highly competitive real estate market.

What Falling Mortgage Rates Mean for Buyers

For potential homebuyers, falling mortgage rates can significantly increase purchasing power. With lower interest rates, monthly payments become more manageable, allowing buyers to afford a higher-priced home than they might have considered earlier this year. Even a small decrease in the interest rate can lead to substantial savings over the life of your loan. This drop in rates could be the break many first-time homebuyers on Oahu have been waiting for, making homeownership more accessible.

Rates seldom move in a straight line, however, so connecting with a reputable mortgage expert early in the process can put buyers in a better position to secure a favorable rate when opportunities present themselves. It’s also important to keep in mind that as more buyers re-enter the market, home prices are expected to rise. Buyers should be prepared to act swiftly, as the best homes on the market won’t be available for long in this competitive environment. 

Pro-tip: For the latest mortgage rates and options, visit Hawai’i Mortgage Group. For more tips on navigating the homebuying process, sign up for Locations' complimentary First-Time Homebuyer Seminar. Our seminars offer valuable insights that will help you to make informed decisions and give you a head start in this dynamic market.

What Falling Mortgage Rates Mean for Sellers

The drop in mortgage rates could also work in the favor of Oahu sellers, too. As buyers gain more purchasing power, there’s likely to be an increase in demand for homes, which can lead to multiple offers and potentially higher selling prices. This is especially true in Oahu neighborhoods where inventory remains limited.

Sellers should also consider that a lower mortgage rate environment often leads to quicker sales. Buyers who were previously on the fence may now feel confident enough to make a move, resulting in fewer days on market. However, to maximize this opportunity, it’s crucial that seller's ensure their home is in top condition and priced competitively.

Navigating the Competitive Oahu Market

The Oahu real estate market has always been competitive, but with more favorable mortgage rates on the horizon, it’s bound to become even more so. Both homebuyers and sellers should be prepared to move quickly. Buyers should have their financing pre-approved and be ready to make an offer when they find the right property. Sellers should work with a knowledgeable real estate agent who understands the nuances of the Oahu market and can help to position their home to attract the best offers.

Recent Changes in NAR: What You Need to Know

In addition to the changes in mortgage rates, the way homes are bought and sold is evolving, and it's essential for both buyers and sellers to stay informed. Changes to the homebuying and selling process include new guidelines that emphasize transparency, which can impact how offers are made and accepted. It’s more important than ever to work with a real estate agent who is up to date on these changes to navigate the market effectively. For more details on these recent NAR changes and how they could affect your real estate transactions, check out our comprehensive guide.

Now’s the Time to Act

With mortgage rates at their lowest point in 16 months, now’s the time to act. Whether you’re looking to buy or sell a home on Oahu, being informed and prepared is the key to success. Don’t miss out on the opportunities this market presents—contact your Locations agent to discuss your real estate goals.

To learn more and take your next step, register for an upcoming complimentary real estate seminar. Locations’ seminars are designed to equip you with the knowledge and strategies you need to succeed in the Oahu housing market. Find the most up-to-date mortgage rates at Hawai’i Mortgage Group.