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COMMUNITY NEWS

This week, mortgage rates rose influenced by higher oil prices and robust labor market data. The May Employment report revealed a surprising 172,000 job gain, well above expectations, signaling economic strength but pressuring mortgage markets. Wage growth remains moderate, and unemployment held steady at 4.3%, impacting the Los Angeles housing market dynamics.

Mortgage rates declined this week amid hopeful reports of progress to end the Middle East conflict, despite rising inflation pressures. The core PCE price index rose to 3.3% annually in April, the highest since November 2023, while the personal savings rate dropped to 2.6%, the lowest since June 2022. Consumer confidence also weakened, reflecting concerns over prices and job availability.

Mortgage rates retreated slightly after reaching July highs, influenced by hopeful news on the Middle East conflict. April saw a slight rise in previously owned home sales, with the median price at $417,700, up 1% year-over-year. Inventory remains tight nationally at a 4.4-month supply, impacting the Los Angeles housing market's dynamics this week.

This week, rising oil prices contributed to higher inflation, with the Consumer Price Index jumping 0.6% in April and reaching 3.8% annually—the highest since May 2023. Mortgage rates climbed to their highest levels of the year, impacting the Los Angeles residential real estate market as housing costs remain a key inflation driver.

Mortgage markets showed volatility this week amid mixed news about the Middle East conflict, with mortgage rates ending slightly lower. The U.S. economy added 115,000 jobs in April, surpassing forecasts and supporting market stability. Wage growth remained modest, and the unemployment rate held steady at 4.3%.

This week, the Federal Reserve maintained the federal funds rate at 3.50 to 3.75%, with a notable split among officials. Core PCE inflation rose to 3.2%, the highest since November 2023, while geopolitical tensions in the Middle East added volatility to mortgage markets. Housing starts surged 11% in March, reaching the highest level since December 2024, despite a drop in building permits.

Mortgage markets experienced volatility this week due to Middle East conflict negotiations, while consumer spending surged 1.7% in March, exceeding forecasts. Despite the strong retail sales, mortgage rates ended slightly higher, influenced by geopolitical tensions and economic data. This dynamic impacts buyers and sellers navigating the Los Angeles residential market.

Sales of previously owned homes fell 4% in March to the lowest level since June 2025, with median prices rising only 1% year-over-year to $408,800. Builder sentiment dropped to its lowest since September 2025, reflecting increased material costs and sales incentives. These trends highlight a cautious market environment influenced by inflation and geopolitical developments.

Starting April 17, the City of Los Angeles is mailing Proposition 218 ballots to property owners about a proposed street lighting fee increase. For many properties, this could mean costs 2x to 3x current levels. Here is what you need to know before yours arrives.