Mortgage Rates Drop Again

Mortgage interest rates continue to fall

Mortgage interest rates, which hit record lows in December 2020 before ticking up again this year, have been trending back down over the past several weeks. As of July 22, 2021, mortgage interest rates fell to a low not seen since mid-February 2021, giving prospective homebuyers some additional buying power.

Current Mortgage Rates

Interest rates are at historically low levels, meaning you can get more bang for your buck. View rate history below to see how current rates compare historically, then contact your Locations agent who can recommend a mortgage professional to get you pre-approved and ready to compete in the competitive Oahu real estate market.

View Rate History

The magic of lower interest rates

Interest rates have a direct effect on monthly borrowing costs, and with Hawaii's high home prices, even a small change in rates can affect how much money you are approved to borrow for your home loan.

For example, at an interest rate of 3 percent, the monthly payment on a $600,000 home (with a 20 percent down payment), would be $2,020. That's less than the average monthly rent on Oahu!

However, should rates return to where they were in early 2019 - at around 4 percent - the monthly payment on that same home with 20 percent down would be $2,290. 

In other words, that one percent difference means you could put down $50,000 with a 3 percent rate on a $600,000 home or about $115,000 with a 4 percent rate on a $600,000 home and have the same monthly payment. 

That's the magic of low interest rates!

Will rates continue to fall?

No one knows for sure how long rates will stay low. Many economists believe that rates will remain low throughout the end of the year.

However, trying to "time" the market by waiting for rates to fall even further could backfire. As interest rates fall, home prices tend to rise. You'll also have more competition from other homebuyers, who will also be lured out by lower rates.

So, if you are ready to become a homeowner (or to trade up), now is a good time to make your move, while interest rates are historically low.

Find out how much you can afford

The first step to finding out how much you can afford is to meet with a loan officer and get pre-qualified for a home loan. If you don't know how to find a loan officer, your Locations Realtor® can recommend one. You can also use our mortgage calculator to estimate your monthly payments.