In Hawaii, we are known to have some of the highest real estate prices in the country. So far this year, we've seen a steady increase in interest rates. To keep things simple, here's an illustration that shows how an increase in rates over time could lead to less purchasing power for a Buyer.
Although it's tough to find a home or condo here these days for $350,000 or less, the point this illustrates is an increase in interest rates from 4% to 5% reduces a Buyer's purchase power by over 11%!
If this trend continues, it'll make housing less affordable for those that are financing. If you're on the fence and will be financing, I'd recommend speaking with a lender to see where you stand as it may make a difference between affording to buy now vs. missing the market.
To find out today's current rates, feel free to check with Tim O'Leary with Prime Lending for more information.