Mortgage rates have climbed this fall. In mid-October the average 30-year fixed rate stood at 7.40%, more than a full point higher than a year ago. Here is what that means in real dollars for Maui buyers and sellers, using the latest local market numbers.
Higher rates change the math for anyone financing a home, but they do not affect every part of the Maui market the same way. Below we look at where rates are today, what they do to a monthly payment at Maui's median prices, and how buyers and sellers can respond.
Where Rates Stand Today
According to Freddie Mac's weekly survey, the average 30-year fixed rate was 7.40% on October 15, 2026, unchanged from the week before. A year earlier it was 6.27%. The 15-year fixed averaged 6.71%, up from 5.52% a year ago.
Average 30-year fixed rate. Source: Freddie Mac Primary Mortgage Market Survey. Bars start at 5% to make the changes easier to see.
The increase has been steady. The 30-year rate averaged 6.67% in August, then moved above 7% in late September after the Federal Reserve raised its benchmark rate on September 16, its first increase since July 2023.
What a Higher Rate Costs on Maui
Using Maui's September 2026 median sale prices from the REALTORS Association of Maui, here is the monthly principal and interest on a 30-year loan with 20% down, at today's rate and at last year's rate:
| Property | Median price | Loan (80%) | At 6.27% | At 7.40% | Difference |
|---|---|---|---|---|---|
| Single-family home | $1,150,000 | $920,000 | $5,677/mo | $6,370/mo | +$693/mo |
| Condo | $660,000 | $528,000 | $3,258/mo | $3,656/mo | +$398/mo |
Principal and interest only. Property tax, insurance and association dues are extra. Figures are rounded and for illustration; your lender will quote your actual rate and payment.
Another way to look at it: the monthly payment that covered a $920,000 loan at 6.27% now covers only about $820,000 at 7.40%. That is roughly $100,000 less buying power for a financed buyer at the same budget.
How the Maui Market Is Responding
September's numbers show a market that is adjusting rather than stalling:
Single-family homes
The median price was $1,150,000, down 11.0% from September 2025, with 52 sales and a median of 134 days on market.
Condos
The median price held steady at $660,000, up 1.1%. Sales jumped 56.5% to 72, but homes took longer to sell, with a median of 199 days on market.
Affordability
The REALTORS Association of Maui affordability index was 35 for single-family homes and 60 for condos. A reading of 100 means a median-income household can just qualify for the median-priced home.
One month of data does not make a trend, and the single-family median moves with the mix of homes that happen to sell. For the full picture, see our September 2026 Maui market report.
Not every buyer is affected the same way. Buyers paying cash, and those using proceeds from another sale, are less sensitive to rate changes than buyers who need a large loan. That is one reason some price ranges and areas hold up better than others when rates rise.
Strategies for Buyers
Get fully pre-approved, not just pre-qualified
A full underwriting pre-approval tells you exactly what you can afford at today's rates and makes your offer stronger, especially if you need a shorter financing contingency.
Ask about seller-paid rate buydowns
A seller credit can be used to buy down your rate, either permanently with points or temporarily with a 2-1 buydown, which lowers the rate by 2% in year one and 1% in year two. In a slower market, sellers are often more open to these credits.
Compare loan types
Adjustable-rate loans and 15-year terms carry different rates and risks than a 30-year fixed. A local lender can compare the options side by side for your situation.
Budget for the full cost of ownership
On Maui, insurance and association dues can add significantly to the monthly payment, especially for condos. Get quotes early. If you are buying a condo for rental income, check the zoning first; our guide to evaluating Maui vacation rental cash flow explains Bill 9 and what to look for.
Strategies for Sellers
Price for today's buyers
With financed buyers' budgets tighter, a home priced on last year's numbers is likely to sit. Pricing from current closed and pending sales gets you the strongest early interest.
Offer a credit instead of a price cut
A seller credit toward a rate buydown can lower a buyer's monthly payment more than an equal price reduction. It is worth running both options before you negotiate.
Prepare for a longer timeline
With condo days on market near 200, plan your move with some flexibility. Our guide on selling your Maui home faster without underpricing covers how to stand out.
Frequently Asked Questions
Should I wait for rates to come down before buying?
No one can reliably predict rates. If you find the right home and the payment works at today's rate, you can refinance later if rates fall. If you wait, you may face more competition when rates do drop.
Do higher rates mean Maui prices will fall?
Higher rates reduce what financed buyers can pay, which can slow price growth or lead to reductions in some segments. Maui's limited supply and the share of buyers who do not rely on financing tend to soften the effect, but it varies by area and price range.
How can I see what I would qualify for?
Talk with a local lender for a pre-approval, and contact our team for the current numbers in the neighborhoods you are considering.
Buying or Selling in a Higher-Rate Market?
The Maui Property Team at Compass can show you current prices, days on market and what is selling in your price range, and connect you with trusted local lenders. Serving Wailea, Kihei, Kula, Kaanapali, Kapalua, Haiku and all of Maui.
Sources: Freddie Mac Primary Mortgage Market Survey, October 15, 2026; REALTORS Association of Maui Monthly Indicators, September 2026. Payment figures calculated by The Maui Property Team.