Touring an Oceanfront Condo in Kihei - Sugar Beach Resort

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145 N Kihei Rd.

Kihei, HI 96753

PRICE REDUCTION! Rarely available, ground-level oceanfront condo steps from the glistening ocean. Step off your lanai onto the longest white sand beach on Maui.

135 Kaimanu Pl.

Kihei, HI 96753

Poised in the luxury gated community of Kaimanu Estates, this elegant 5-bedroom, 4.5-bath Mediterranean-style villa offers a peaceful and private retreat.

Contact your Agent for a 15 min. consultation and learn how to save Thousands of $$$!

Aloha and hau`oli makahiki hou - happy new year! We hope your 2022 is off to a happy and healthy start.

We probably don’t have to tell you that 2021 ended with record inflation! But have you heard the latest economic news?!?

In their December meeting, the Federal Reserve decided that NOW is the time to respond. Based on the most up-to-date economic projections, the Fed is making a policy shift that will directly - and quickly - impact mortgage rates.

Since March 2020, the federal government has been buying mortgage-backed securities (MBS) to keep the economy as healthy as possible during the pandemic. MBSs are a type of bond that has a powerful influence on mortgage rates - so as the Fed continued to make MBS purchases, interest rates continued to drop.

There’s been talk in recent months, though, that the Fed could start “tapering” these bond purchases. What does that mean for homebuyers? It means the remarkably low interest rates we’ve enjoyed for the past 20 months are now in the rearview mirror.

In fact, we can tell you - hot off the presses - that interest rates for conforming loans are now averaging around 3.625% - up from 3.125% just two weeks ago.

And thanks to the fast pace of inflation and the now-booming job market, the Fed has moved up its deadline for ending its MBS purchases entirely, from mid-2022 to early 2022. Based on forecasting by real estate industry experts, this means that the average 30-year fixed rate mortgage is likely to reach 4% or higher this year.

Likewise, the National Association of REALTORS® has predicted we’ll see a 2022 rate of at least 3.75% - along with a 6% rise in home prices. Let’s take a peek at a simple example of how those changes would affect a monthly mortgage payment. For a buyer purchasing a $100,000 home with 5% down:

Based on a current interest rate of 3.625%, the monthly payment on a 30-year fixed-rate mortgage loan of $95,000 would be $433.

But when the purchase price goes up to $106,000 (bumping up the loan amount to $100,700) and the interest rate rises to 3.75%, the monthly mortgage payment becomes $466.40.

Following the same formula, for a buyer purchasing a $1 million home, the monthly payment would increase from $433 to $466. That’s a 9% jump!

Of course we’re talking about future projections here, and if there’s anything the pandemic has taught us, it’s to expect the unexpected! But even if mortgage interest rates don’t continue to shoot up right away, they’re highly, highly likely to creep up throughout the coming calendar year.

And do you know of any reliable source who’s predicting that home prices on Maui will do anything other than increase this year? We sure don’t.

If you’re considering a home purchase, there’s truly no time like the present! Let us help you take advantage of today’s interest rates before they’re “so 2021” - a thing of the past.

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