Interest rates drop to record low

Published: May. 31, 2012 at 11:04 PM HST|Updated: May. 31, 2012 at 11:59 PM HST
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HONOLULU (HawaiiNewsNow) - The interest rate for home loans has never been lower. Mortgage buyer Freddie Mac said Thursday the average rate on the 30-year fixed rate loan fell to 3.75%. That is down from 3.78% last week and it is the fifth straight week of record lows.

The average for a 15-year loan has dipped to 2.97%, also a record.

Brokers and realtors told Hawaii News Now there has never been a better time to purchase a home. Not only are interest rates low, but homes are still relatively affordable.

"It also really really really helps if you can refinance. It can improve your cash flow. It'll shorten your term. It'll give you some extra cash if you want to keep your payment the same. All of this providing, or course, you have some equity in your home," said Stephen Higa, Sr. Executive Loan Officer with Point Financial.

The low interest rates are expected to stimulate what have been rather flat real estate sales in Hawaii.