Hawaii Mortgage Rates Drop Below Six Percent

According to Freddie Mac, mortgage rates should hold steady for most of 2007.

In the case of Hawaii mortgage seekers, this would be great news.

After alll, the 6 percent mortgage rate held in Hawaii for only about a week. Already, local lenders have cut their rates an eighth or even a quarter below that level.

After months at lower rates, most mortgage lenders in Hawaii were back to quoting 6 percent for a 30-year fixed-rate home loan.

But then the three key lenders that resisted temptation to hike to 6 percent by holding at 5.875 percent - Central Pacific Home Loans, Territorial Savings Bank and Wells Fargo Home Mortgage - were joined this rate by American Savings Bank and Countrywide Home Loans.

First Hawaiian Bank, Bank of Hawaii and Finance Factors cut their home loan rates more, joining Territorial Savings Bank at 5.75 percent. Hawaii National Bank, which had been at 6.125 percent, cut to 6 percent.

For 15-year notes, Territorial cut back down to 5.25 percent, while First Hawaiian Bank, Bank of Hawaii, American Savings Bank, Central Pacific Bank, Finance Factors and Hawaii National Bank all cut their rates back down to 5.5 percent.

With home prices in Hawaii low, and now mortgage rates also reasonable, this is an ideal time to shop for a house in the state.