Mortgage rates reached their highest levels in the intermediate cycle at around 8% in October 2023. Over the following year, they gradually declined, hitting a low of 6% by October 2024. This drop coincided with the Federal Reserve’s first rate cut of the year, a widely anticipated move that had already been factored into the market.
However, by November 2024, rates rebounded to 7% as economic reports showed inflation remaining “sticky,” persisting above the Federal Reserve’s target. Meanwhile, the labor market continued to demonstrate resilience, further influencing rate increases.
The election is now behind us, rates have stabilized around 7%, but uncertainty remains about how Trump’s economic plan will be implemented and its potential impact on the economy. Key questions include how much it will stimulate growth, influence inflation, and affect the already significant government debt levels. While the economy remains strong, expectations for further rate drops have tempered compared to projections from just a few months ago.
For a more in-depth analysis of how these trends and economic policies are shaping mortgage rates, check out my blog for detailed insights.
If you are in the Los Angeles area, and have any questions or real estate sales or financing needs, feel free to contact me
Ron Henderson GRI, SRES, SFR, RECS, CIAS, CREN, GREEN
President/Broker
Multi Real Estate Services, Inc.
Gov’t Affairs Chair – Southland Regional Association of Realtors (2025)
Gov’t Affairs Chair – California Association of Mortgage Professionals (2017-2018)
Chairman – OutWest Marketing Meeting (Real Estate Education)
BRE #00905793 NMLS #310358
www.mres.com
ronh@mres.com
Specialist in the Art of Real Estate Sales and Finance
Real Estate market, mortgage rates, Los Angeles, San Fernando Valley, Conejo Valley, Simi Valley, Woodland Hills, West Hills, Calabasas, Chatsworth
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