15-year mortgage rate at record low 2.56%

The average U.S. rate on the 15-year fixed mortgage fell to a new record low this week, and the rate on the 30-year fixed loan declined. Cheaper mortgages have encouraged more home-buying and refinancing.

Mortgage buyer Freddie Mac said Thursday that the average rate for the 15-year fixed mortgage slipped to 2.56 percent. That’s the lowest on records dating to 1991. It fell from 2.61 percent last week, the previous record.

The rate on the 30-year loan declined to 3.35 percent from 3.40 percent last week. That’s near the average rate of 3.31 percent reached in November, the lowest on records dating back to 1971.

Low mortgage rates have helped sustain a housing recovery that began last year.

Hawaii Gas, Tesoro reach deal on naphtha

Hawaii Gas said Thursday it has reached an agreement with Tesoro to continue getting naphtha, the fuel Hawaii Gas uses to produce synthetic natural gas, from Tesoro through midsummer. As a result of that agreement, Hawaii Gas said it is no longer urgent that the company bring liquefied natural gas into Hawaii, so it has withdrawn its application with the state Public Utilities Commission to import LNG.

Hawaii Gas said the agreement with Tesoro allows Hawaii Gas to continue to provide gas service to its customers until it enters into agreements with new suppliers.

"When longer-term supply agreements are in place, (Hawaii Gas) expects to submit a new LNG application," the company said.

"LNG remains a high priority for Hawaii Gas and is an integral part of our fuel diversification strategy and our efforts to help Hawaii meet its clean energy goals," Jeff Kissel, Hawaii Gas CEO, said in a news release.

Tesoro closed its refinery in Kapolei this week but will continue to supply customers with imported products. Tesoro is negotiating with potential buyers of the refinery.

Hawaii Gas said earlier this year it hoped to import LNG as a contingency plan in the event its naphtha supply was disrupted by the closing of Tesoro’s refinery. LNG has the potential to provide a lower-cost energy alternative for Hawaii, according to Hawaii Gas.

U.S. economic reports hold out hope

WASHINGTON » Fewer people are losing their jobs. Employers are struggling to squeeze more work from their staffs. The U.S. is producing so much oil that imports are plunging, narrowing the trade deficit.

A string of data Thursday raised hopes for stronger hiring and U.S. growth in coming months. More jobs would spur spending and help energize the economy, which has yet to regain full health nearly four years after the Great Recession officially ended. And an interest rate cut Thursday by the European Central Bank, if it helps bolster the European economy, could also contribute to U.S. growth.

Jobless claims drop to 5-year nadir

WASHINGTON » The number of Americans seeking unemployment aid fell last week to seasonally adjusted 324,000, the lowest since January 2008. The drop points to fewer layoffs and possibly more hiring.

The Labor Department said Thursday that weekly applications fell 18,000, the second straight sharp drop. The four-week average, a less volatile measure, plummeted 16,000 to 342,250, close to a five-year low.

Applications are a proxy for layoffs. When they fall below 350,000, it is generally consistent with moderate hiring.

U.S. trade deficit falls to $38.8 billion

WASHINGTON » The U.S. trade deficit narrowed in March for a second month as the daily flow of imported crude oil dropped to the lowest level in 17 years. The deficit with China hit a three-year low.

The overall trade deficit decreased to $38.8 billion, an 11 percent drop from February’s $43.6 billion, the Commerce Department reported Thursday.

Exports fell 0.9 percent to $184.3 billion as sales of machinery, cars and farm products all declined. Imports fell 2.8 percent to $223.1 billion, led by a 4.4 percent drop in foreign petroleum. Crude oil imports averaged just 7 million barrels per day, the lowest since March 1996.

U.S. worker productivity rises just 0.7%

WASHINGTON » U.S. worker productivity barely grew from January through March after shrinking in the final three months of 2012. Weak productivity growth could prompt employers to hire more if consumers and businesses continue to increase spending.

The Labor Department said Thursday that productivity rose at a seasonally adjusted annual rate of 0.7 percent in the first quarter, after shrinking 1.7 percent in the previous quarter. Labor costs increased at a seasonally adjusted annual rate of 0.5 percent, below the fourth quarter’s 4.4 percent gain.

Intel taps COO Krzanich as next CEO

NEW YORK » Intel, one of the pillars of Silicon Valley, is following its traditions and promoting an insider to the job of CEO. The world’s largest chip maker is tasking Chief Operating Officer Brian Krzanich with steering it through an industry shake-up that is seeing tablets and smartphones overshadow Intel’s base in personal computers.

Intel announced Thursday that Krzanich will replace Paul Otellini on May 16. Six months ago Otellini, 62, announced his surprise decision to resign and will end a nearly 40-year career with Intel, including eight years as CEO.

Krzanich, who is 52 and has spent his entire career at the company, comes out of a manufacturing organization where meticulous attention is required to churn out processors with billions of minute details.

On the Move

Catholic Charities Hawai‘i has announced the appointment of Janice Nillias Knapp as its new vice president for development. She has 16 years of fundraising experience working for nonprofit organizations and was previously a lead fundraising professional at Hospice Hawaii.

Junior Achievement of Hawaii has announced the election of Frederick Lwee to its board of directors. He is vice president and controller of Servco Pacific Inc.

The Institute for Luxury Home Marketing has recognized Dawn Marie for her performance in the $1 million-and-above luxury home market in Hono­lulu. Her recognition has earned her membership in the Million Dollar Guild. Marie is a broker and owner of Kahala Associates.

Central Pacific Bank has announced that four checks totaling $100,454 will be presented to the following employee-selected beneficiaries at the CPB Walks for You Event on May 4: Aloha Harvest, the Bobby Benson Center, Easter Seals Hawaii and Hawaii 3R’s. Money raised at the walk will help feed the hungry in Hawaii.