Historical Interest Rates

I receive interest updates from several sources all the time. Recently, one source posted some historical interest rates along with the current interest rates. Thought I would share.

Currently, a 30-year fixed Mortgage rate is 2.77%, 3 basis points lower versus last week! 15-year fixed rate is 2.1%, unchanged versus one week ago.

Now for the historic interest rates:

  • Average 30-year Interest Rate in the 2010’s: 4.1%
  • Average 30-year Interest Rate in the 2000’s: 6.9%
  • Average 30-year Interest Rate in the 90’s: 8.1%
  • Average 30-year Interest Rate in the 80’s: 12.7%

Interest rates have an affect on home prices, as you might expect. When I purchased a home in the early 1980’s in South Orange County, it cost $157,000. That’s about what I could afford with a 12% interest rate! If rates were lower at the time, I, along with thousands of other buyers, could afford more home! It would most likely have driven up home prices (supply and demand).

Return on a Kitchen Remodel

I recently spoke with a long-time client of mine about a kitchen remodel they were contemplating. She wanted to know what kind of return she would get on her investment of a complete kitchen remodel. I told her she could expect about 98%, but it could be more!

If you were able to do some of the work yourself or maybe refurbish the cabinets rather than replace, you most likely would get that 100% return.

I also think it has a lot to do with size of home, and even the area where the home is located. If you have a larger home, and live in a more upscale area, you would most likely get more than the 98% return on your complete kitchen remodel, in my opinion. Buyers of those larger, more expensive homes, expect a beautiful updated kitchen. And they are usually willing to pay extra for it.

Naturally, the remodel has to be functional as well as beautiful. Installing a small range in a large chef’s kitchen won’t make sense. Likewise, you would want to install a vent/hood that will definitely do the job over a large six-burner range. And don’t skimp on cupboard and storage space! Making mistakes like this in a remodel can be costly when it comes time to resell.

Nothing is wrong with style or adding personal touches in a kitchen, but it must be functional first! The kitchen is usually the heart of the home, and being functional is key to longevity in your remodel. Trends and styles can come and go, but function and usability are forever.

Mallorca Condo with Lake and Mountain Views

This Mallorca Condo is the right choice for someone looking to feel like they are on vacation year ’round! This home features many beautiful updates as well as awesome Saddleback and Lake Mission Viejo views. Enjoy two HOA pools PLUS your own private beach with dock, BBQ’s, picnic area and kayak storage. Another plus is that this home is a sought-after entry level unit with only a few steps!

Property is located at 22384 Estallens. It features two bedrooms, two baths and 1444sf of living space. The detached two-car garage is just steps away. Enjoy the incredible views from your own large private deck that greatly expands the living space.

This super property was just listed, and it won’t last long!

Check out the photo tour below!

22384 Estallens, Mission Viejo listed by Roddy Jordan of Regency Real Estate Brokers

Just Listed – Exceptional View Home

If you are looking for a truly turnkey home with some wonderful updates PLUS an outstanding view AND privacy, you can’t do much better than this listing in Rancho Santa Margarita.

18 San Bonifacio in Rancho Santa Margarita is a four bedroom, two and a half bath property of just over 1700sf. A very sunny, open and comfortable floor plan with numerous updates throughout, situated on a generous-sized VIEW lot. Spacious rear yard is low maintenance and ideal for entertaining with large covered patio, built-in-bbq (with its own custom cover), artificial turf and amazing mountain and hillside views!

18 San Bonifacio listed by Terry Matheus/Ruth Bargy of Regency Real Estate Brokers

Check out the photo tour below!

18 San Bonifacio Photo Tour