According to a statement from the Mortgage Bankers Association, the quantity of new mortgage appilcations is up 14.4% over the prior week. That brings new homebuyers' activity to the highest rate we've seen since the homebuyer tax credit was in full swing. Looks like many people are opting for the ultimate family present this Christmas, a new home.
While it is true historically low interest rates are partially responsible for luring buyers back into the market, that is not the only reason for the spike in purchase activity. Consumer confidence is slowly returning to the marketplace, pushed by a pent-up demand and a realization that securing a loan is not a difficult a process as it was even six months ago. Money is available and being loaned for purchase, although qualification is definitely more strict than in the days the market was overheated.
And, Hawaii tourism numbers and Wakiki hotel occupancy numbers are up significantly. This fact, coupled with new airline seats being added to Hawaii routes seemingly every week bodes well for mainland folks who want to invest in Hawaii real estate. An individual can purchase a Waikiki condo for thier own use at selected times of the year and use it as a rental the remainder of the time to create cash flow that helps make the purchase. In fact, I just got a mortgage interest rate update that showed an investor can secure a conforming 30-year fixed-rate mortgage for a simple interest rate as low as 4.5%.
So, let the games begin. Come find your piece of paradise.
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