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Maui Mortgage Rates Spike

By
Real Estate Agent with Tom and Sean Maui Real Estate

Because of inflation concerns, mortgage rates jumped almost 40 basis points this week.

 Freddie Mac said Thursday the 30-year fixed-rate mortgage average was up from last week to 6.63% with an average 0.6 point for the week ending July 24. Last week, the average was 6.26%, and the year-ago average was 6.69%."Market concerns about rising inflation, further weakness in the housing market and greater probability that the Federal Reserve will raise short-term rates this year all combined to push mortgage rates higher this week. Some of the key drivers to these concerns were consumer prices jumping 1.1% (annualized) in June - the largest increase since September 2005 on a year-over-year basis - coupled with consumer prices growing at a 5% clip (on a year-over-year basis), the strongest since February 1991," said Frank Nothaft, Freddie Mac's chief economist, said in a statement.

This makes housing less affordable everywhere, including Maui real estate.

For more information on how this may effect Maui, please Contact Us.