If you're thinking about buying a home in Los Angeles, you might be waiting for mortgage rates to drop before making your move. But here's the truth: waiting could cost you more—not less.
Rates Are Already Below the Historical Average
Many buyers are surprised to learn that today’s mortgage rates, while higher than recent lows, are still below the historical average. According to The Mortgage Reports, the long-term average mortgage rate sits at 7.71%. Current rates remain under that mark, and while fluctuations happen, there's no clear sign that dramatic cuts are coming soon. In fact, policymakers expect only one or two rate cuts in 2025—if any.
LA's Economy Is Gaining Strength
Los Angeles is becoming more resilient. In 2024, LA’s real GDP grew by 3.4%, up from just 1% the year before. Average real income grew by 3.8%, thanks in part to over 42,000 new jobs in education and health, and 9,300 new jobs in leisure and hospitality, according to the LA Economic Development Corporation. More jobs and higher wages are good news for homeowners, but they also mean increased demand. That demand can drive prices up.
Housing Affordability Is Expected to Decline
With housing supply still tight and the local economy strengthening, long-term affordability is on a downward trend. Prices may dip slightly in the short run, giving buyers a small window of opportunity, but most projections suggest values will continue rising over time. And here's what most buyers overlook: you can refinance later if rates drop, but you can’t go back in time and buy at today’s prices.
What This Means for You
If you're financially ready, buying now means locking in a home before prices climb again. You'll have more inventory to choose from, you’ll benefit from lower competition, and you can act while interest rates are still below historical norms.
At the Stephanie Younger Group, we’re here to help you evaluate your timing, financing, and neighborhood options. Let us guide you with real data and honest advice.