Hawaii Mortgage Rates for September 2019

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In Hawaii, the current average for a 30-year fixed-rate mortgage is 3.81%. The 15-year fixed-rate mortgage averages at 3.38%, while the 5/1 adjustable-rate mortgage (ARM) average is 3.32%.

Loan typeAverage rateWeekly change3-month change
30-year fixed3.81%–0.07%–0.32%
15-year fixed3.38%–0.05%–0.27%
5/1 ARM3.32%–0.01%–0.20%
Rates for a $200,000 loan with 20% down payment

For both first-time homebuyers and current homeowners looking to refinance, understanding the rate environment is the first step to finding the right financing. With home prices at record highs, even a few percentage points off your mortgage can save you thousands in the long run. Our research compared home loan rates in the Aloha State according to loan type, lender choice, and location.

Best Mortgage Rates in Hawaii

Right now, the lowest interest rate for a 30-year mortgage in Hawaii is 3.13%. The best rates for a 15-year mortgage or 5/1 ARM can go as low as 2.63% and 2.50% respectively. Use the rate form above if you'd like to compare these numbers to quotes based on your own details.

Mortgage rates can be affected by a number of factors, leading to significant differences in the quotes that consumers see. For Hawaii, our data showed that the highest and lowest interest rates for a 30-year mortgage are separated by 152 basis points. On a mortgage of $200,000 with 20% down, that translates to a difference of $50,106 in total interest.

Current Mortgage Rate Forecast for Hawaii

For 2019, mortgage rates across Hawaii and the rest of the nation might not rise as quickly as previously anticipated. The Federal Reserve's Open Market Committee (FOMC) recently announced that it would adopt a data-dependent "wait-and-see" approach when it came to future rate hikes, which may indicate a slower pace of rate hikes than we saw in 2018.

Line graph of average U.S. 30-year mortgage rates vs. effective federal funds rate since 2014

Currently set at a range of 2.25%-2.50%, the target federal funds rate represents the overnight rate that banks pay to borrow money to fund their operations. Due to the correlation between the target federal funds rate and the interest rates offered on consumer loans and deposits, the FOMC's periodic announcements are seen as indicators of future trends in rates. Closely tied to this trend are mortgage rates, although slight deviations may exist in the trend between mortgage rates and fed funds due to consumer demand, credit considerations and costs incurred during the mortgage lending process.

For prospective homebuyers in Hawaii, the news of a possible stabilization in rates creates some breathing room. In times of rising rates, homebuyers often rush to secure financing before interest rates rise too high, which can result in shoppers making a sub-optimal purchase. With the FOMC announcing its intent to closely monitor market conditions prior to implementing more rate hikes, homebuyers can take comfort in the knowledge that their borrowing costs are less likely to spike while they're shopping for a home.

Rates at Hawaii's Most Popular Mortgage Lenders

Banks represent some of Hawaii's biggest mortgage lenders, although their market share has been facing recent challenges from direct lenders such as Quicken. We looked at home loan rates from several of the state's top banks to determine what these popular lenders are offering.

Column graph comparing 30-year mortgage rates at major Hawaii banks

Like most states in the country, Hawaii doesn't see a lot of variation in the mortgage rates offered by its major banks. At the time we checked these rates, there was a difference of 32.5 basis points between the highest and lowest rate at Hawaii's top five mortgage lenders. Unless your financial details are particularly unique, you can expect to see similar rates from any of these lenders.

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Comparing Home Loan Rates by City

The location of your home purchase has more impact on its price than on the interest rate of the loan you get to pay for it. In order to see how rates and prices intersect to determine the cost of a mortgage, we matched up the average 30-year home loan rate in each of Hawaii's major urban areas with the local median home value.

MSAAverage mortgage rateMedian home value
Urban Honolulu4.41%$686,687
Hilo4.51%$359,064
Kahului-Wailuku-Lahaina4.51%$598,461
Kapaa4.51%$535,580
Average rate is for a 30-year mortgage with a 20% down payment.

Compared to the slight dips and rises in interest rate, home value changes dramatically according to your zip code. These values have a much bigger say in how much you pay on your mortgage every month. For instance, a home loan in Honolulu at 4.5% would cost $2,784 on a median home purchase after 20% down. Compare this to Hilo, where $1,456 covers principal and interest for a median home at the same mortgage rate.

Choosing a different type of mortgage is another way you can adjust your interest rate to something more favorable. Loans with shorter terms or adjustable rates offer savings to homeowners who know how to make use of them. To understand how this works, we can use the example of a theoretical homeowner in Hawaii looking to refinance.

Evaluating Your Mortgage Options: An Example in Hawaii

For the sake of argument, let's consider a homeowner who has (somehow) purchased a home in Hawaii for just $200,000. If she puts down 20% at closing, that leaves a mortgage balance of $160,000. If our homeowner chooses the standard 30-year fixed-rate mortgage, her monthly principal and interest would cost $747. In 30 years, she would own the house free and clear having paid $108,720 in interest.

But few borrowers stick around long enough to make all 360 payments of a 30-year mortgage. If the homeowner plans to sell her home and settle the loan in five or six years, she could benefit from the lower initial rate of a 5/1 ARM loan. These mortgages give you a lower starting interest rate for the first five years of repayment, then revert to a "floating" rate that can go much higher. For those who definitely plan to sell before the fixed period ends, ARM loans can be a way to save.

Right now, Hawaiians can get an average 5/1 ARM at 3.32%. On our theoretical $160,000 loan balance, this comes out to $703 per month. Compared to the cost of a regular fixed-rate loan, this represents considerable savings—for the first five years. After that, costs may exceed those of a comparable fixed-rate mortgage.

Finally, some homebuyers may be determined to pay down their mortgage debt as quickly as possible, building valuable equity in their property. In such cases, a 15-year fixed-rate mortgage offers great savings on interest at the cost of much higher monthly payments over the term. In the example above, Hawaii's current average of 3.38% for a 15-year home loan results in $1,135 per month and $44,194 in lifetime interest.

In Hawaii, the current average for a 30-year fixed-rate mortgage is 3.81%. The 15-year fixed-rate mortgage averages at 3.38%, while the 5/1 adjustable-rate mortgage (ARM) average is 3.32%.

Loan typeAverage rateWeekly change3-month change
30-year fixed3.81%–0.07%–0.32%
15-year fixed3.38%–0.05%–0.27%
5/1 ARM3.32%–0.01%–0.20%
Rates for a $200,000 loan with 20% down payment

For both first-time homebuyers and current homeowners looking to refinance, understanding the rate environment is the first step to finding the right financing. With home prices at record highs, even a few percentage points off your mortgage can save you thousands in the long run. Our research compared home loan rates in the Aloha State according to loan type, lender choice, and location.

Right now, the lowest interest rate for a 30-year mortgage in Hawaii is 3.13%. The best rates for a 15-year mortgage or 5/1 ARM can go as low as 2.63% and 2.50% respectively. Use the rate form above if you'd like to compare these numbers to quotes based on your own details.

Mortgage rates can be affected by a number of factors, leading to significant differences in the quotes that consumers see. For Hawaii, our data showed that the highest and lowest interest rates for a 30-year mortgage are separated by 152 basis points. On a mortgage of $200,000 with 20% down, that translates to a difference of $50,106 in total interest.

For 2019, mortgage rates across Hawaii and the rest of the nation might not rise as quickly as previously anticipated. The Federal Reserve's Open Market Committee (FOMC) recently announced that it would adopt a data-dependent "wait-and-see" approach when it came to future rate hikes, which may indicate a slower pace of rate hikes than we saw in 2018.

Line graph of average U.S. 30-year mortgage rates vs. effective federal funds rate since 2014

Currently set at a range of 2.25%-2.50%, the target federal funds rate represents the overnight rate that banks pay to borrow money to fund their operations. Due to the correlation between the target federal funds rate and the interest rates offered on consumer loans and deposits, the FOMC's periodic announcements are seen as indicators of future trends in rates. Closely tied to this trend are mortgage rates, although slight deviations may exist in the trend between mortgage rates and fed funds due to consumer demand, credit considerations and costs incurred during the mortgage lending process.

For prospective homebuyers in Hawaii, the news of a possible stabilization in rates creates some breathing room. In times of rising rates, homebuyers often rush to secure financing before interest rates rise too high, which can result in shoppers making a sub-optimal purchase. With the FOMC announcing its intent to closely monitor market conditions prior to implementing more rate hikes, homebuyers can take comfort in the knowledge that their borrowing costs are less likely to spike while they're shopping for a home.

Banks represent some of Hawaii's biggest mortgage lenders, although their market share has been facing recent challenges from direct lenders such as Quicken. We looked at home loan rates from several of the state's top banks to determine what these popular lenders are offering.

Column graph comparing 30-year mortgage rates at major Hawaii banks

Like most states in the country, Hawaii doesn't see a lot of variation in the mortgage rates offered by its major banks. At the time we checked these rates, there was a difference of 32.5 basis points between the highest and lowest rate at Hawaii's top five mortgage lenders. Unless your financial details are particularly unique, you can expect to see similar rates from any of these lenders.

Get Multiple Mortgage Offers at Once
Get Multiple Mortgage Offers at Once
LendingTree can help you find and compare mortgage rates, all without affecting your credit.
LendingTree is our ultimate parent company
See Offers

on LendingTree's secure website. NMLS #1136: terms and conditions apply

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LendingTree is our ultimate parent company

The location of your home purchase has more impact on its price than on the interest rate of the loan you get to pay for it. In order to see how rates and prices intersect to determine the cost of a mortgage, we matched up the average 30-year home loan rate in each of Hawaii's major urban areas with the local median home value.

MSAAverage mortgage rateMedian home value
Urban Honolulu4.41%$686,687
Hilo4.51%$359,064
Kahului-Wailuku-Lahaina4.51%$598,461
Kapaa4.51%$535,580
Average rate is for a 30-year mortgage with a 20% down payment.

Compared to the slight dips and rises in interest rate, home value changes dramatically according to your zip code. These values have a much bigger say in how much you pay on your mortgage every month. For instance, a home loan in Honolulu at 4.5% would cost $2,784 on a median home purchase after 20% down. Compare this to Hilo, where $1,456 covers principal and interest for a median home at the same mortgage rate.

Choosing a different type of mortgage is another way you can adjust your interest rate to something more favorable. Loans with shorter terms or adjustable rates offer savings to homeowners who know how to make use of them. To understand how this works, we can use the example of a theoretical homeowner in Hawaii looking to refinance.

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Get Multiple Mortgage Offers at Once
LendingTree can help you find and compare mortgage rates, all without affecting your credit.
See Offers

on LendingTree's secure website. NMLS #1136: terms and conditions apply

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LendingTree is our ultimate parent company
Get Multiple Mortgage Offers at Once
Get Multiple Mortgage Offers at Once
LendingTree can help you find and compare mortgage rates, all without affecting your credit.
LendingTree is our ultimate parent company
See Offers

on LendingTree's secure website. NMLS #1136: terms and conditions apply

Powered by
LendingTree is our ultimate parent company