What Fluctuating Rates Mean for LA Buyers and Sellers in 2025

Thinking about buying or selling a home in LA? That’s a huge decision, and one of the most crucial details you need to understand are mortgage interest rates. They’re not just a number on a screen; they’re constantly shifting, and those changes can have a big impact on your sale or investment. Today, I’ll explain what’s going on and what you can do to win in this market, whether you’re buying or selling.

Why are mortgage rates fluctuating? Mortgage rates aren’t fixed. They change daily based on several factors, including inflation, investor behavior, the Federal Reserve, and economic conditions.

In July 2021, rates for a 30-year fixed mortgage were around 3%. Fast forward to mid-2023, and they had climbed to roughly 6%. This increase was seen as a step to help control rising prices after the pandemic.

What does it mean for buyers? With all this talk about fluctuating rates, you might be thinking, “Should I just wait it out?” Absolutely not! There are smart ways to handle these rate fluctuations. Lenders today offer clever ways to help you manage these rate changes, such as:

1. Rate locks. This lets you “lock in” a specific interest rate for a certain time while you look for a home. It protects you if rates go up before you close on your loan.

2. Buydowns. With a buydown, you can lower your interest rate for the first year, two, or even three years of your loan. This can make your initial monthly payments more affordable.

3. First-time buyer programs. Many local areas offer special help for people buying their first home. This can include assistance with down payments or better loan terms.

What does it mean for sellers? Sellers need to remember that today’s buyers are more payment-conscious than ever, prioritizing both manageable monthly costs and long-term financial stability. To attract buyers and secure the best price, I recommend the following:

1. Offer closing cost credits to enhance your home’s appeal, especially for buyers looking for the best deal.

2. Implement rate buydowns to help buyers manage their payments

3. Offer flexible payment scenarios that highlight affordable options in addition to the listing price. Work with your agent to explore some options.

Rates can be unpredictable, but with the right plan, you don’t have to feel trapped by the market. Whether you’re buying, selling, or exploring options, it’s essential to make informed decisions rather than emotional ones.

If you want to discuss your situation without any pressure, feel free to reach out at (818) 903-5854 and tammyjerome@gmail.com. I’m here to help you make smart moves in today’s market.