Rates, prices continue to rise in Honolulu

Mortgage rates have climbed to levels not seen since 2003, according to this article from the Honolulu Advertiser/AP:

The rising rates have begun to cool the sizzling housing market with sales of both new and existing homes posting bigger-than-expected declines in January.
Nothaft said the housing sector, which posted record sales levels for five straight years, was shifting to a slower pace, but he predicted the decline would not be severe enough to disrupt the overall economy like the stock market slowdown did in 2000.

"We see no signs of a bursting bubble, but rather a return to a more normal pace of activity," he said.

Some economists believe that 30-year mortgage rates could rise as high as 7 percent by the end of the year.

Check out this chart featuring real estate trends for a couple Honolulu neighborhoods (click on the image to enlarge):