B4 • Friday, September 6, 2024
thegardenisland.com
THE GARDEN ISLAND
Mortgage rates trending lower this fall less of an obstacle to sellers.” “Continued improvements in mortgage rates are expected to drive more home sales,” says Skylar Olsen, chief economist at Zillow. “However, we are also entering a period of uncertainty for reasons that are often overlooked by econometric models: the behavior of buyers who may be holding out for further rate drops with growing confidence in an upcoming Fed rate cut, and the significant uncertainty surrounding the approaching elections. These factors may influence major decisions and have an impact on existing home sales as we near the end of the year.”
Jeff Ostrowski BANKRATE.COM If you’ve been holding out for lower mortgage rates, they’re finally here. The average 30-year mortgage rate began falling from 7 percent in mid-July, and landed just under 6.5 percent as of late August. However, mortgage rates might not fall as precipitously this month, even with the likelihood of a Federal Reserve rate cut. With inflation cooler, the Fed is primed to cut rates at its next meeting ending Sept. 18 — the first reduction since the pandemic. While the Fed doesn’t directly set mortgage prices, it does influence them, and they’ve been trending down as cuts loom. “Mortgage rates will trend lower in September, but it will be an uneven journey,” says Greg McBride, CFA, Bankrate’s chief financial analyst. “Economic data, such as a weak jobs report, would spur more movement in mortgage rates than any response to a long-expected Fed interest rate cut.” “Mortgage rates will bump around over the next few weeks, and I expect rates to be between 6.2 percent and 6.4 percent at the end of the year.,” says Lisa Sturtevant, chief economist at Bright MLS. When will mortgage interest rates go down? Mortgage rates have already started to pull back, with the 30year loan averaging 6.48 percent as of Aug. 28, according to Bankrate’s weekly lender survey.
U.S. construction spending falls more than expected in July
FAQ
• How are mortgage rates determined? It might seem like a bank or lender are dictating mortgage terms, but in fact, mortgage rates are not directly set by any one entity. Instead, mortgage rates grow out of a complicated mix of economic factors. Lenders typically set their rates based on the return they need to make a profit What to do if you’re getting after accounting for risks and a mortgage now costs.The Federal Reserve • Improve your credit score. A doesn’t directly set mortgage rates, but it does set the overall MARK ZALESKI / THE TENNESSEAN / USA TODAY NETWORK lower credit score won’t prevent you from getting a loan, but it can tone. The closest proxy for mortgage rates is the 10-year Treasury Ariel and Cameron McCain in front of their home in Lyles, Tenn., make all the difference between yield. Historically, the typical 30getting the lowest possible rate on Monday, Aug. 19, 2024. year mortgage rate was about and more costly borrowing two percentage points higher terms. The best mortgage rates Higher mortgage rates have Still, rates might not come go to borrowers with the highest than the 10-year Treasury yield. kept homeowners locked in to down as low as some homeownlower-cost loans. Meanwhile, the credit scores, usually at least 740. In 2023, that “spread” was more ers hope, as forecasters previ• Save up for a down payment. like three percentage points. median home price surged to a ously baked in a September rate • When should I refinance Putting more money down uprecord $422,600 in July, accordcut. In fourth quarter 2024 outlooks, Fannie Mae analysts antici- ing to the National Association of front can help you obtain a lower my mortgage? Deciding when to refinance is mortgage rate, and if you have 20 Realtors. pate 30-year rates at 6.4 percent, “Lower mortgage rates make it percent, you’ll avoid mortgage in- based on many factors. If rates while the Mortgage Bankers Assohave fallen since you originally surance, which adds costs to more affordable for buyers to ciation predicts 6.5 percent. The took out your mortgage, refinancyour loan. If you’re a first-time purchase a home,” Sturtevant National Association of Realtors ing might make sense. A refi can says. “But lower rates also make homebuyer and can’t cover a 20 projects 6.7 percent. it easier for existing homeowners percent down payment, there are also be a good idea if you’ve imCurrent rate trends proved your credit score and to sell. Nationwide, there is an av- loans, grants and programs that could lock in a lower rate or erage three percentage point gap can help. The eligibility requireThe average interest rate on a lower fees. A cash-out refinance ments vary by program, but are between rates on new and exist30-year fixed mortgage was 6.48 can accomplish that as well, plus ing mortgages. This rate gap has often based on factors like your percent as of Aug. 28, according give you the funds to pay for a kept some homeowners from list- income. to Bankrate’s survey of lenders. home renovation or other ex• Understand your debt-to-inRates haven’t been this low since ing their home for sale. As rates come ratio. Your debt-to-income penses. fall, the rate gap is going to be 2023.
Hawaiiana Management Company, Ltd. Serving Kauai’s Condo & Community Associations with award-winning service
Lucia Mutikani RUETERS WASHINGTON, D.C. — U.S. construction spending fell more than expected in July as higher mortgages and increased supply weighed on single-family homebuilding. The Commerce Department’s Census Bureau said on Tuesday that construction spending dropped 0.3 percent after being unchanged in June. Economists polled by Reuters had forecast construction spending dipping 0.1 percent. Construction spending increased 6.7 percent yearon-year in July. Spending on private construction projects decreased 0.4 percent in July. Investment in residential construction also fell 0.4 percent. Outlays on new single-family construction projects plunged 1.9 percent. Spending on multi-family housing was unchanged. A surge in mortgage rates in the spring weighed on homebuilding and sales, leading to an inventory overhang in some regions. The excess supply and weak demand has forced builders to hold back breaking ground on new projects. Single-family homebuilding dropped to a 16-month low in July, with inventory near levels last seen in early 2008. Residential investment, which includes homebuilding, contracted in the second quarter after double-digit growth in the January-March quarter. Mortgage rates have since dropped to 16-month lows amid expectations the Federal Reserve will start cutting interest rates this month. Spending on private non-residential structures like factories dropped 0.4 percent as the boost from a drive by President Joe Biden’s administration to bring semiconductor manufacturing back to the United States fades. Investment in public construction projects edged up 0.1 percent. State and local government spending slipped 0.1 percent and outlays on federal government projects jumped 2.1 percent.
(DTI) ratio compares how much money you owe to how much money you make, specifically your total monthly debt payments against your gross monthly income. Not sure how to figure out your DTI ratio? Bankrate has a calculator for that.
H
awaiiana currently serves over 60 residential and commercial associations on the Island of Kauai. Kauai native Sunshine Ruiz Hatto serves as Hawaiiana’s Vice President of Kauai Operations from its office at the Kukui Grove Executive Center in Lihue.
Sunshine Ruiz Hatto Vice President Kauai Operations
• • • •
99% retention rate among clients Local (vs. mainland) banking All employees are in Hawaii Serving over 60 associations on Kauai
www.hmcmgt.com
LUCY TAYLOR SR. MANAGEMENT EXECUTIVE
MAUREEN AMO MANAGEMENT EXECUTIVE
AMY CAMPBELL MANAGEMENT EXECUTIVE
KRISTEN KURZ MANAGEMENT EXECUTIVE
MIRISHAE MCDONALD MANAGEMENT EXECUTIVE
SUNNI EFHAN MANAGEMENT EXECUTIVE
KENDRA VEGA MANAGEMENT EXECUTIVE
HINAHEA LANGI OFFICE MANAGER, SENIOR ADMINISTRATIVE ASSISTANT
RACHELE BURNS TOGUCHI OFFICE/LEAD ADMINISTRATIVE ASSISTANT
ASHLEIGH-MORGAN SHIGETA FRONT DESK ADMINISTRATIVE ASSISTANT
Hawaiiana’s Kauai Properties: Alihi Lani Alii Kai at Hanalei Alii Kai II Aliomanu Estates Apopo Hale Emmalani Court Halaulani Condominium Hale Honu Halelani Village at Puhi Halemalu at Puhi Hanalei Bay Villas Hooluana Condo at Kohea Loa Hookena at Puhi Islander on the Beach Kahala at Poipu Kai Ka‘iulani of Princeville Kakela Makai Oceanview Kalaheo Pali Kai Kalapaki Beach Club AOAO Kalihiwai Ridge Kamahana
Kapaa Shore Kauai Beach Resort Kauai Beach Resort Association Kawaihau Sports Villa K.G. Enterprises Condominium Kiahuna Plantation AOBO Kohea Loa Master Association Koloa Garden Apartments Kuhio Shores at Poipu Kukui‘ula Kulana Lae Nani Lihue Townhouse Makanui Manualoha Paradise Court Pali Ke Kua Paliuli Pikake Pili Mai at Poipu Plantation at Princeville
Poipu Crater Poipu Kai Association Poipu Kai Racquet Club Poipu Kai Water Reclamation Poipu Kapili Poipu Sands Prince Kuhio Princeville II Community Association Princeville II Community Association - Queen Emma Bluff Princeville Makai Ranch at Halele‘a Princeville Paniolo Princeville Sealodge I
Puamana Puhi Industrial Park Pu‘u Po‘a Regency at Poipu Kai Regency Hule‘ia Regency Villas at Poipu Kai Sandpiper Village I Sealodge II The Villas at Poipu Kai Villas at Puali Villas of Kamali’i Villas on the Prince Waikomo Stream Villas Wailua Bay View Waipouli Beach Resort
For more information about Hawaiiana’s services, contact Sunshine Ruiz Hatto at 808-792-0515 or email sunshine@hmcmgt.com.