Mortgage Rates, for the past month, have been dropping significantly, to the tune of about a 1% drop (from the low 6%’s to the low 5%’s).   If you are looking to buy or refinance, a 1% difference in the interest rate makes for a big difference in the mortgage payment.  If rates didn’t change, the sales price would have to drop 8% to give you that same discount on your mortgage payment.  That price drop, historically, hasn’t really happened in Hawaii. They are approaching new historic lows we were not anticipated to see again.  This is definitely a time to take advantage of this development.  If you haven’t heard from your mortgage broker about possibly refinancing, you may want to talk to someone about yours.  Esp. if your current rate is around the 6% or higher mark.  Feel free to contact me, if you would like a recommendation of someone to talk to.

Why have rates come down so much?  The “D” word is a good read as to why rates have come down.

The concern I have is in the future.  Rates will probably be way down here for a short while, but what will be the consequences of all of this money being added to the market by the Government that we don’t have, in the long run?  Inflation?

Read also, Mortgage Rates Plummet After $800 Billion Credit Infusion.