LA-Area Home Sales Are Still Strong Despite Increased Mortgage Rates

Interest rates on the typical 30-year fixed mortgage have risen to 6.08 percent as of late

By Dolores Quintana

No one knows where the real estate market in Los Angeles is headed. According reports, however,the market has started to slow as mortgage rates have risen steadily and prices of homes have started to drop. 

Interest rates on the typical 30-year fixed mortgage have risen to 6.08 percent as of late. This rise is due to high rates of inflation according to UCLA accounting and real estate professor Eric Sussman, as quoted by KCRW.com. In comparison, the average rate for the same mortgage was 2.96 % in 2021 as reported by KCRW.com

Los Angeles Real Estate Agent Dunia Handy Gill said, as quoted by KCRW.com, “I’m still seeing multiple offers. I’m seeing cash, but I’m also still seeing buyers with mortgages, but not [with] 30-year fixed mortgages, more of a seven ARM [adjustable-rate mortgage], even a 10 ARM. So mortgage companies are getting a little more creative to continue to have buyers that can purchase.” 

So homes are still being purchased, especially in specific and luxurious areas like Pasadena according to Handy Gill.  

Professor Sussman notes that the people of Los Angeles still have pent-up desires to buy property because of how they have been sequestered by the pandemic, according to KCRW.com. He is skeptical of a potential market crash. 

He says, as quoted by KCRW.com, “I’ve told everyone if they’re waiting for a collapse, they’ll be waiting for Godot. It ain’t gonna happen because of modest supply. They got so overstretched and that’s what causes the sharp declines and that snowball effect when people sell the banks, then have issues with their loans and they’re foreclosing. … That just is not going to happen this cycle as best that I can see.” 

Handy Gill and Sussman agree, in general, that it is still a good time to buy a home in the area. 

Handy Gill says, as quoted by KCRW.com, “If you are intending on purchasing and holding on to a property for at least three to five years, this is absolutely a great time. And I’m seeing that there’s more on the market for the buyers.”

Wisely, Sussman would like to avoid overly optimistic predictions and believes that trying to predict the real estate market is very difficult. He says, as quoted by KCRW.com,  “It’s a fool’s errand to try to seek out peaks and troughs in markets, certainly in real estate. So I agree with the broad sentiment.”

Professor Sussman said, according to KCRW, that he doesn’t envy the job of Federal Reserve Chairman Jerome Powell and his job’s responsibility to avoid a recession by balancing interest rates.

Related Posts

Santa Monica Man Arrested for Allegedly Exporting Electronics to Iran

July 15, 2025

July 15, 2025

Ostovari, identified as the CEO of a Tehran-based engineering firm, allegedly orchestrated the scheme since 2018  A 66-year-old Santa Monica...

California Hits Two-Thirds Clean Energy Milestone

July 15, 2025

July 15, 2025

This year, clean energy has powered the state for an average of seven hours daily, with over 90% of days...

ICE Raids Disrupt Labor in Fire Recovery Efforts: REPORT

July 14, 2025

July 14, 2025

Immigrants, comprising about 75% of Los Angeles County’s construction workforce with nearly half undocumented, per a Bay Area Council analysis,...

Nonprofit Formed by Palisades High Alumni to Host Benefit Concert for Fire Recovery

July 14, 2025

July 14, 2025

All proceeds will support relief for the Hildebrand family, Palisades High School’s booster club and Palisades Dolphin Strong The Pacific...

Santa Monica Assault Suspect Faces Multiple Charges, Authorities Seek Additional Victims

July 14, 2025

July 14, 2025

Marbra allegedly assaulted a 52-year-old woman on the Strand in Santa Monica, facing a felony count of assault with intent...

Elvis’ TV Legacy in Beverly Hills to be Explored in Upcoming Event

July 14, 2025

July 14, 2025

The session will feature rare clips from the Paley Archive, including Presley’s debut TV appearance, his 1968 Comeback Special, performances...

Veterans Tech Group to Launch Los Angeles Chapter with Networking Event

July 14, 2025

July 14, 2025

Founded in San Francisco, VetsInTech operates 20 chapters nationwide and claims more than 60,000 veterans VetsInTech, a national nonprofit that...

County Launches Campaign to Boost Fire-Hit Small Businesses

July 13, 2025

July 13, 2025

Affected businesses can register for promotional support and resources, while residents are urged to take a Shop Local Pledge and...

One-Acre Riviera Lot Listed for $7.25M After Fire Loss

July 13, 2025

July 13, 2025

The site includes completed Phase I and II plans featuring an accessory dwelling unit, infinity pool, sauna/gym, and sport court...

Sen. Ben Allen Highlights Challenges, Economic Gains for LA28 Olympics

July 12, 2025

July 12, 2025

The remarks came during the first informational hearing of the Senate’s Special Committee on International Sporting Events State Sen. Ben...

Downtown Santa Monica CEO Andrew Thomas to Step Down

July 12, 2025

July 12, 2025

Thomas, who rejoined DTSM, Inc. in 2022, oversaw the introduction of a private security program, expanded homeless outreach, and boosted...

Mayor Bass Issues Directive to Protect Immigrant Communities

July 12, 2025

July 12, 2025

The order expands access to city resources for affected families and requests records from ICE, including details on arrests Mayor...

USC Initiative Seeks Fire Recovery Stories from LA County Residents

July 11, 2025

July 11, 2025

Two community listening sessions are planned: one on July 19 from 9 a.m. to 1 p.m. at KCRW Headquarters in...

County Supervisors Move to Preserve Measure J Amid Charter Error

July 11, 2025

July 11, 2025

Measure J mandates that at least 10% of the county’s locally generated, unrestricted funds be allocated to community investments like...

Pepperdine Announces 2025-2026 Arts Season with Diverse Lineup

July 11, 2025

July 11, 2025

The lineup includes a mix of dance, music, theater, and art exhibitions across the Malibu campus Pepperdine University’s Lisa Smith...