While we’ve all been hearing, for the past year, how high interest rates are going to go in 2014, and how by the end of 2014 they’ll be in the 5% range. Well, reality seems to be a bit different as interest rates are now lower than they were last year.
One year ago in June/July 2013, the Federal reserve had announced that they were going to slowly ease up on buying monthly mortgage bonds, which is what had kept interest rates so low. Everyone began anticipating higher rates, and rates went up to the mid-4% range immediately. This week, however, the average 30-year-fixed mortgage rate was only 4.14%.
With home values in the South Bay easing up steadily, it’s a great time to nab the perfect South Bay Home before prices get too high and before interest rates actually do go higher and price you out. Just look at the recent trends in median home values in Manhattan Beach: