NEW YORK and HONOLULU (HawaiiNewsNow) - Mortgages rates are back above 5 percent for the first time since last April, and Hawaii banks have raised their own lending rates in line with the national trend.
Freddie Mac reported Thursday that the national average rate for a fixed-rate 30-year mortgage has risen from 4.81 percent last week to 5.05 percent now.
Hawaii Real Estate Central, which collects mortgage rates from Hawaii lenders weekly, reports the following APRs:
- First Hawaiian Bank 5.08 percent.
- Bank of Hawaii 5.041 percent.
- American Savings Bank 5.099 percent.
- Central Pacific HomeLoans 5.089 percent.
Wells Fargo, the biggest offshore mortgage lender in Hawaii, is quoting 5.024 percent APR. APR stands for annual percentage rate and is the actual rate after points and fees are added.
Banks no longer hold onto mortgage notes to collect the monthly payments, but instead tend to bundle mortgage notes and sell them to investors in competition with 10-year Treasury bonds. This causes mortgage rates to track T-bill interest rates, which are lower in uncertain economic times but rise when the economy seems more stable.