How Low Can Honolulu Interest Rates Go?

January 26th, 2009 categories: Mortgages & Financing, The Market

Had a meeting this morning with representatives from a company that manages a half trillion dollars. That would be $500,000,000,000. I had to think about how to write that number for a minute. Anyway, as we discussed various aspects of the money market, they said that the Fed Funds rate is at .25% (yes, that is ¼%)! Their point was that the Fed is printing money as fast as it can and interest rates are near as low as they can go. What does this mean for Oahu real estate?

Here are a few random thoughts.
1. Sometime in the next few years, or sooner, don’t be surprised to see inflation come into the market.
2. If inflation does begin to rise, Honolulu real estate should be a very good hedge against it.
3. If you are waiting for interest rates to go lower, you are risking missing historically low interest rates! If you have to refinance an existing mortgage get it done. If you are thinking about buying, you may not be able to do it this cheap ever again. In other words, don’t risk trying to get a better interest rate, if you can lock a rate for less than 5.0% do it.

Feel free to call me at 808-737-2093 or toll free at 877-737-2093, to discuss any questions that might arise.

This entry was posted on Monday, January 26th, 2009 at 1:29 pm and is filed under Mortgages & Financing, The Market. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.