Interest Rates drop again to 4%.

Aloha, 

US economy closer to normal than it appears: Fed's Bullard. The U.S. jobless rate will fall below 6 percent and inflation looks likely to rise back to 2 percent later this year, putting the economy closer to normal than most realize, a top Federal Reserve official said on Thursday.

"You are basically going to be near normal on both dimensions basically later this year," St. Louis Fed President James Bullard, speaking in an interview on Fox Business Network. "That's shocking, and I don't think markets, and I'm not sure policymakers, have really digested that that's where we are."

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Bullard reiterated his belief that raising rates by the end of the first quarter in 2015 will be appropriate, based on his forecast that U.S. growth will register 3 percent for the next four quarters.

If data disappoint, he said, he will revise that forecast.

Later Thursday, Bullard spoke at the Council on Foreign Relations, saying that at the current 6.3 percent rate of unemployment, the United States is "way ahead of schedule" on its trajectory toward a normal labor market. He added that that Federal Reserve may be behind the curve if the unemployment rate drops faster than expected, but he is confident that it will act appropriately.

Bullard also said that he believes the U.S. is no longer in a low-inflation environment, and that inflation will continue to tick higher and rise above 2percent next year.

By Reuters with CNBC - http://www.cnbc.com/id/101781858

Conventional			Conventional			FHA
30 Year Fixed Rate			15 Year Fixed Rate			30 Year Fixed Rate
Rate	Points	APR	Rate	Points	APR	Rate	Points	APR
4.0	1.25	4.176	3.0	1.875	3.386	3.625	1.875	3.837
4.125	0.25	4.218	3.125	1.25	3.421	3.75	0.375	3.839
4.25	0.0	4.323	3.25	0.75	3.474	3.875	0.0	3.934
Jumbo			Jumbo			Jumbo
30 Year Fixed Rate			15 Year Fixed Rate			7/1 ARM
Rate	Points	APR	Rate	Points	APR	Rate	Points	APR
3.875	1.75	4.054	3.375	1.625	3.668	2.875	1.0	2.978
4.0	1.0	4.118	3.5	1.125	3.719	3.0	0.75	3.085
4.125	0.125	4.170	3.625	0.625	3.772	3.125	0.5	3.191

Oahu Single-Family Home Price Rises 8%

The median price of a single-family home on Oahu rose 8 percent in May, while the median price for a condominium increased 13 percent, according to statistics released Saturday by the Honolulu Board of Realtors.

The median price of a single-family home hit $682,000 in May, compared to the median price of $630,000 that was set in May 2013. In addition, the number of sales increased by 15 percent to 305 units sold in May from the 266 condos that were sold during the same month 2013.

The median price of an Oahu condominium jumped 13 percent to $355,000 from $315,000 one year ago, while sales increased by just 1 percent to 457 condos sold from the 452 units that were sold in 2013.

City Council Looking for more money from Property Taxes

City Council Looking for more money from Property Taxes

In 2013 the Honolulu City Council amended the definition of the "Residential A" real property tax classification as follows:

"Residential A" shall mean a parcel, or portion thereof, which either:

1. Is improved with no more than two single family dwelling units; and(A) Has an assessed value of $1,000,000 or more; (B) Does not have a home exemption; and (C) Is zoned R-3.5, R-5, R-7.5, R-10 or R-20 or is dedicated for residential use;
2. Is vacant land zoned R-3.5, R-5, R-7.5, R-10 or R-20; or
3. Is a condominium unit with an assessed valuation of $1,000,000 or more and does not have a home exemption.

Residential A excludes any parcel or a portion thereof, improved with military housing located on or outside of a military base.

This revised definition of "Residential A" appears to focus on second homes or investment properties, as properties are not eligible for or do not have a homeowner exemption.

This year, Resolution 14-53, CD 1 would establish the tax rate for this category at $6 per $1,000 of the property's assessed value. This Resolution will be heard by the full City Council on Wednesday, June 4 at 9:00 a.m. as part of the City Budget hearing.

At previous hearings, HBR testified in favor of raising the threshold of Residential A properties from $1 million to $2 million. In addition, HBR proposed a tiered tax structure as follows:

            $1 to $2 million at a rate of $3.50 per $1,000

            $2 to $4 million at a rate of $4.50 per $1,000

            $4+ million up at a rate of $5.50 per $1,000

In initial discussion with Councilmembers, a single tax rate for Residential A at $4.50 per $1,000 was considered. The current proposed rate of $6.00 is higher than originally discussed. This upcoming hearing is about the rate. No further changes can be made to the threshold or to the classification at this time.  

The City Affairs Committee strongly objects to this rate and is calling for our members to take at least one of the following actions before theWednesday, June 4, 9:00 a.m. City Council hearing:

1. Contact your City Councilmember to voice your concern that the high rates would be passed on to renters forcing many low to middle class renters out of the rental market;
2. Send in written comments objecting to the proposed tax rate for Residential A by June 3 to your City Councilmember; and
3. Attend the City Council hearing scheduled for Wednesday, June 4 at 9:00 a.m.  If you intend to read your written comments, please submit your written testimony to Council Chair Ernie Martin byTuesday, June 3 at 9:00 a.m. You may also attend the hearing without comment.