Fed keeps short-term rates unchanged

By Holden Lewis • Bankrate.com

The Federal Reserve kept short-term interest rates steady during a confusing time when house prices are falling, yet overall consumer prices are rising. Home-building, real estate and mortgage businesses are slowing down. Put together, those industries make up a sizable chunk of the economy, and when they suffer, the Fed normally would at least consider cutting short-term interest rates. But inflation persists. It steadily remains above the central bank's purported comfort zone. Normally, the Fed would attack inflation by raising short-term rates, or at least keeping them steady and hinting at possible rate hikes in the future.

With threats coming from both sides, the Fed left short-term interest rates alone in the regularly scheduled meeting of the Federal Open Market Committee. The federal funds rate remains 5.25 percent, and the prime rate remains 8.25 percent. The committee has left short-term rates alone for a year, after it had raised rates a quarter-point at a time in 17 meetings over two years.

Read the full article at http://www.bankrate.com/nltrack/news/fed/main-june07.asp?caret=1

Dowling, Morgan Stanley close Makena deal

Pacific Business News (Honolulu) - June 26, 2007 http://www.bizjournals.com/pacific/stories/2007/06/25/daily36.html

Now Shooting Real Estate like a Pro!!

LOVE our new Nikon D80 with 18-200mm lens, recommended by our friend William Conrad. Make sure you find the actual Nikkor lens and not the Quantaray, an off-brand.

Business in Hawaii - A Global and Local Perspective

Yesterday we attended a conference featuring Harvey Shapiro, Research Economist for the Honolulu Board of Realtors, Jose Menendez from San Antonio, Director of Multicultural Markets for Stewart Title, Edward Case, real estate and transactional attorney + former U.S. Representative and my favorite - Ted Jones from Houston, Chief Economist for Stewart Title. Here's what the boys had to say...

I almost forgot...Lt. Govenor James Duke Aiona started the morning off with comments on transparency in government, reduced fees and online business registration. He also said that we need to make sure that our government understands its place in business. True.

Harvey:

• 22.6% of Hawaii's Gross State Product is military



• 17% of Hawaii's Gross State Product is real estate



• The market has been experiencing reduced demand but this is stabilizing



• Inventory expansion has stalled



• Financing costs are rising (he updated the night before the first decrease in weeks...see previous post)



• He forecasts that we will stabilize at 8000 home sales annually, there were 4000 annual sales in the early 90s (Japanese Bubble)
  

Jose:

• Create a culture of service-orientated people in your office



• Communicate your company's mission and core values clearly

Ed:

• Long-term debt carried above GDP drives interest rates up



• Watch the estate tax in 2009



• Just because something has been happening doesn't mean it will happen

Ted:

• Hawaii's job growth maintained a 2.27% 1year average which is 63% above the 10-year average of 1.69%



• Honolulu's job growth has maintained a 2.14% 1-year average vs. the 10-year average of 1.31%



• US unemployment for 2007 = 4.5%, Hawaii & Honolulu are both 2.3%



• He said this is the reason all the idiots have jobs :o)



• Oil and energy drove interest rates until 2002 when Greenspan started lowering rates to stir up the economy



• Oil costs more per barrel due to the decrease in value of the USD



• Typically development is balanced at 1.25-1.50 net new jobs per dwelling unit. Hawaii is at 1.92 which means we need more homes

1st mortgage rate decline in 7 weeks

By Holden Lewis • Bankrate.com

Finally, relief. For the first time in two months, mortgage rates fell.
The benchmark 30-year fixed-rate mortgage fell 8 basis points to 6.76 percent, according to the Bankrate.com national survey of large lenders. A basis point is one-hundredth of 1 percentage point. The mortgages in this week's survey had an average total of 0.27 discount and origination points. One year ago, the mortgage index was 6.83 percent; four weeks ago, it was 6.42 percent.
The 15-year fixed-rate mortgage fell 8 basis points to 6.45 percent. The 5/1 adjustable-rate mortgage fell 9 basis points to 6.58 percent.
Before this week, the average rate on a 30-year fixed had risen seven weeks in a row, going from 6.27 percent in Bankrate's April 25 survey all the way up to 6.84 percent in last week's survey. It had been more than three years since rates had climbed so rapidly.

Heaven on Earth Spa Club & Cafe

The moment has finally come...the grand opening of Heaven on Earth Spa Club & Cafe at the luxury Ko'olani condominium is set for July 3, 2007. Invitations have been sent and we'll be making our first appointments ASAP.

The opening event will also feature a fashion show by Anne Namba.

If you would like to join us, please email Spa@OptimumWorld.com.

Check out our new Nikon D80

Here are a few photos from our recent lifestyle research trip to Makena/Wailea on Maui


Makena Bay with Molokini on the horizon

Patrick shot this one - do we know how to BBQ or what?

Bianca's Birthday at Orchids

Today is Bianca's birthday. I wanted to take her to Contemporary Museum's Cafe but she's been addicted to Orchids since Assistant's Day. This is a funny photo.

Save The Date - HDC Mid-Year Review & Forecast - July 10th

Dr. Beach's Top American Beaches 2007

America's Best Beaches 2007
Beach Photos

1.	Ocracoke Lifeguarded Beach, Outer Banks, North Carolina
2.	Caladesi Island State Park, Dunedin/Clearwater, Florida
3.	Coopers Beach, Southampton, New York
4.	Hanalei Bay, Kauai, Hawaii
5.	Coast Guard Beach, Cape Cod, Massachusetts
6.	Hamoa Beach, Maui, Hawaii
7.	Main Beach, East Hampton, New York
8.	Coronado Beach, San Diego, California
9.	Lighthouse Point Park, Daytona Beach, Florida
10.	Siesta Beach, Sarasota, Florida

May 2007 Market Reports

May 2007 Hawaii Market Reports are now posted online at: http://OptimumRealtyLLC.com/MarketProfileHawaii

May 2007 US Market Reports are now posted online at:
http://OptimumRealtyLLC.com/MarketProfileUSA

Two new International links now available at:
http://OptimumRealtyLLC.com/MarketProfileGlobal

The Chinese Boom may be Coming to Hawaii!