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

THIS WEEKEND: Five Outdoor Concerts for Make Music Day Comes to Santa Monica

June 20, 2025

June 20, 2025

The global event, inspired by France’s Fête de la Musique, unites communities through music and is observed in over 800...

(Video) Where great minds grow at The Willows Community School

June 19, 2025

June 19, 2025

The Willows, a DK-8 co-educational school, enrolls 474 students from 57+ zip codes annually. As a balanced, progressive educational leader, experiential learning,...

National Guard Shortage Strains Firefighting Efforts Amid Trump Deployment: Governor

June 19, 2025

June 19, 2025

Newsom claims the redeployment, which he calls illegal, has left the Monte Fire—spanning 868 acres and injuring three firefighters—understaffed Governor...

THIS WEEKEND: Theatre Palisades Stages Last Performances of ‘Jest a Second!’

June 19, 2025

June 19, 2025

The play, a sequel to “Beau Jest,” follows Sarah and Bob, now married and expecting a child, as they navigate...

(Video) A Plus Tree: A Steward of Urban Forest Management Across Los Angeles

June 18, 2025

June 18, 2025

For More Information, Go to Aplustree.com For More Information, Go to https://t.co/3PhU1J5wOj pic.twitter.com/1AWITi5NFw — Palisades News (@PalisadesNewsLA) June 19, 2025

(Video) See Inside Voodoo Doughnuts’ New Venice Beach Shop

June 18, 2025

June 18, 2025

The Creative Portland Franchise Has Opened Up at Windward Circle The Creative Portland Franchise Has Opened Up at Windward Circle....

Palisades Teacher Wins National Award, $5K for Supporting Students After Wildfire

June 18, 2025

June 18, 2025

A student athlete nominated him for the award, praising his ability to connect classroom lessons to real-world challenges Dave Suarez,...

Real Estate Agent Charged with Price Gouging After Palisades Fire

June 18, 2025

June 18, 2025

The charges stem from violations of California’s price gouging law, which caps price increases at 10% during a declared state...

What to Expect at This Weekend’s ‘Venice Summer Fest’ in Mar Vista

June 18, 2025

June 18, 2025

Attendees Can Expect More Than Two Dozen Bands, a Classic Car Show, Food Trucks, Vendors and More The Venice Summer...

Palisades, Pasadena Teens Raise Over $55K for Fire Relief with National Initiative

June 17, 2025

June 17, 2025

The initiative, now supported by a team of five and over 1,100 volunteer hours, has partnered with 18 nonprofits to...

July 4th Celebration to Take Place in Palisades for 78th Annual Event

June 17, 2025

June 17, 2025

The event aims to unite residents in a show of resilience and community spirit The Pacific Palisades community, undeterred by...

Second Doctor to Plead Guilty in Matthew Perry Ketamine Case, Faces Up to 40 Years

June 17, 2025

June 17, 2025

Doctor Admits to Illegally Supplying Ketamine to the Actor and His Assistant One of the physicians charged in connection with...

Multiple Injuries Reported in Windward Ave Collision: REPORT

June 17, 2025

June 17, 2025

Emergency crews closed the affected intersection to secure the area and began cleanup efforts A vehicle collision involving at least...

This Palisades Territory is Now Vacant. Now It Needs a Representative on Palisades Council

June 16, 2025

June 16, 2025

Applications require a statement detailing years lived in Palisades, positions on community issues and optional biographical details The Pacific Palisades...

Florida Congressman to Visit American Legion Palisades for Relief Fundraiser

June 16, 2025

June 16, 2025

The event aims to support the post’s relief efforts, with 100% of proceeds benefiting the cause Congressman Brian Mast, a...