Why Did the Fed Rate Cut Lead to Higher Mortgage Rates?

Rates went up when everyone expected them to drop. Here’s what really happened and what it means for the 2025 housing market

📊 Why Did the Fed Rate Cut Lead to Higher Mortgage Rates? The Fed cut rates by a quarter point, so why did mortgage rates jump instead of falling?  Many assume that these rate cuts directly lower mortgage rates, but that’s not how it works. Mortgage rates actually follow the bond market, specifically the 10-year Treasury yield, not the Fed’s short-term rate.  The Fed’s long-term outlook changed yesterday, and the markets reacted to this negative news—pushing mortgage rates higher.   🔍 Here’s What Happened:   📈 Inflation Outlook: The Fed expects inflation to persist into 2025, pushing Treasury yields and mortgage rates higher. 🤔 2025 Rate Cut Expectations: The Fed reduced its 2025 rate cut projections from four to two, signaling less aggressive cuts ahead. 🏛️ New Administration: Uncertainty around tariffs and the new administration’s economic policies.     💭 My Take: The Fed seems lost as they are unclear how the new administration’s policies will play out. They are now signaling fewer rate cuts than originally expected, which means higher interest rates are here to stay for most of 2025. Despite elevated mortgage rates this year, LA County still experienced a 7% price growth.  So, what does this all mean? Don’t wait for a market crash, it’s not likely to happen.  📞 Ready to Take the Next Step? Jeremiah Vancans Real Estate Agent Vancans Group | Compass jeremiah@vancansgroup.com vancansgroup.com CELL: 310-363-1416  OFFICE: 310-299-9305 DRE: 01944484 Contact Me For: 🏠 Property Alerts:  Get real-time updates on new listings tailored to your preferences. Sign Up for Alerts 📊 Market Activity & Heat Maps: See current home prices, trends, and local market stats. View Market Insights 📋 Seller Reports: Find out your home’s value with a personalized market analysis. Request Seller Report   ⭐ Trusted by Clients: With over 200 five-star reviews, our past clients rave about our exceptional customer service and commitment to transparent transactions. See why we’re their top choice! REVIEWS VANCANSGROUP.COM Our mailing address is: Vancans Group | Compass 8560 Sunset Blvd, 3rd Floor  West Hollywood, CA 90069 Want to change how you receive these emails? You can update your preferences or unsubscribe from this list.

L.A. Zoning Plan Keeps 72% of City for Single-Family Homes

Single-family homes in Los Angeles will be more valuable than ever

🏠 L.A. Zoning Plan Keeps 72% of City for Single-Family Homes The Los Angeles City Planning Commission voted to keep 72% of the city’s residential land zoned for single-family homes, restricting where new apartment buildings can be constructed. This decision is part of a state-mandated rezoning effort, as L.A. must plan for over 450,000 new homes by 2029.   🔑 Key Takeaways: 🏘️ Zoning Limits: New housing will be built mostly in areas already zoned for apartments, leaving single-family zones largely untouched. 📣 Public Debate: Housing advocates called for more density to combat housing shortages, while homeowners voiced concerns about property values and overdevelopment. 🏞️ L.A.’s limited land and strict zoning will keep new construction low, especially for entry-level homes, driving higher home values and better returns for single-family homeowners. 🏠 New Construction Reality Check I’ve put together a link to new construction homes under $1.5M in L.A.—but options are limited.  I found one detached single-family home priced at $1.5M, complete with an ADU. Check it out HERE to see what the cheapest new detached home in L.A. looks like right now.     Explore 2024 New Construction Homes in L.A under $1.5M List of New Homes in L.A over $1.5M 💭 My Take: Most new construction single-family homes aren’t entry-level anymore. With limited land to build on, the best opportunities for new entry-level homes seem to be in Orange County, San Bernardino, and Santa Clarita—areas with longer commutes and a different lifestyle than L.A.’s urban core. 📊 Limited Land for New Homes = Long-Term Appreciation for Single-Family Homes   🏡 Protected Suburbs: Most of L.A.'s suburban neighborhoods will remain untouched and limited in supply, preserving their unique character and desirability. 💰 What It Means: Low supply equals higher long-term appreciation for single-family homes as demand continues to rise   How to Strategize on this Zoning Decision Jeremiah Vancans Real Estate Agent Vancans Group | Compass jeremiah@vancansgroup.com vancansgroup.com CELL: 310-363-1416  OFFICE: 310-299-9305 DRE: 01944484 ⭐ Trusted by Clients: With over 200 five-star reviews, our past clients rave about our exceptional customer service and commitment to transparent transactions. See why we’re their top choice! REVIEWS VANCANSGROUP.COM Our mailing address is: Vancans Group | Compass 8560 Sunset Blvd, 3rd Floor  West Hollywood, CA 90069 Want to change how you receive these emails? You can update your preferences or unsubscribe from this list.

Pending Home Sales Jump 12.1% Year-Over-Year

12.1% Sales Jump + New Loan Limits—What It Means for You

Pending Home Sales Jump 12.1% Year-Over-Year For the four weeks ending November 24th, U.S. pending home sales increased by 12.1% compared to last year, according to Redfin—the largest surge since May 2021. Despite challenges like rising mortgage rates, activity in the market continues to pick up. Other key trends include: 📈 Mortgage Purchase Applications: Rose 12% from the previous week, showing stronger demand from buyers. 🚪 Home Tours: Down slightly to a two-month low but still 7% above last year’s levels. 🏠 New Listings: Increased 10.6% year-over-year, the biggest gain since April. This uptick highlights renewed energy in the market, creating opportunities for both buyers and sellers as we head into the holidays. Check out my article last week about Rates, Prices and 2025 Market Trends.     2025 Loan Limits Increase for High-Cost Areas The Federal Housing Finance Agency (FHFA) has raised conforming loan limits for 2025, offering buyers in high-cost areas increased flexibility to finance larger homes or multi-unit properties. These adjustments aim to make homeownership more accessible in pricier markets. Here’s a breakdown of the new high-cost area loan limits: 🏠 1 Unit: Up to $1,209,750 🏢 2 Units: Up to $1,548,975 🏘️ 3 Units: Up to $1,872,225 🏨 4 Units: Up to $2,326,875 With these increases, buyers can take advantage of larger loans to purchase their dream homes or build their investment portfolios. Want my curated list of lenders to talk about getting preapproved?  Hit me up here and I'll send you my list of preferred lenders.   Interested in Buying or Selling? Jeremiah Vancans Real Estate Agent Vancans Group | Compass jeremiah@vancansgroup.com vancansgroup.com CELL: 310-363-1416  OFFICE: 310-299-9305 DRE: 01944484 ⭐ Trusted by Clients: With over 200 five-star reviews, our past clients rave about our exceptional customer service and commitment to transparent transactions. See why we’re their top choice! REVIEWS VANCANSGROUP.COM Our mailing address is: Vancans Group | Compass 8560 Sunset Blvd, 3rd Floor  West Hollywood, CA 90069 Want to change how you receive these emails? You can update your preferences or unsubscribe from this list.

Housing Market Update: Rates, Prices, and 2025 Trends You Need to Know

Mortgage Rates Hit 7%: What’s Next 

The HousingWire reports that the average 30-year mortgage rate climbed to 7.02% this week, marking what many professionals now consider the "new normal." Industry forecasts suggest rates may stabilize between 5.75% and 7.25% in 2025, offering a narrower range of fluctuations compared to recent years. While rising rates pose affordability challenges, buyers can still find opportunities to navigate the market strategically.
 

LA Home Prices See 7% Growth Despite Rising Mortgage Rates

The median price for a single-family home in Los Angeles County rose from $893,650 in October 2023 to $956,210 in October 2024, a 7% year-over-year increase. This growth demonstrates the resilience of the Los Angeles housing market, despite rising mortgage rates. The sustained demand reflects the city’s strong appeal, although buyers are now facing higher costs than they were a year ago. You can explore more about these trends through the California Association of Realtors and Los Angeles Almanac.
 

Steady Growth Predicted for the Housing Market in 2025

📈 2025 Housing Forecasts: Industry experts anticipate continued growth in home prices across the nation.

• Goldman Sachs: +4.4%

• HousingWire: +3.5%

• Wells Fargo: +4.3%

• Zillow: +2.3%

These forecasts suggest a steady upward trend for home values, reflecting sustained demand despite affordability concerns. With low inventory and less competition, demand for properly marketed properties remains strong. However, listings with poor pricing or subpar presentation can become stale, creating unique opportunities for savvy buyers. Buyers and sellers alike should prepare for a competitive market heading into the new year.

Key Points

• 📈 Rate Update: As of this morning, the average 30-year conforming rate is at 6.95%, while 15-year rates remain steady at 6.37%. Check the latest rate quotes at Mortgage News Daily for updates.

• 📊 Conforming Loan Limits: For Los Angeles County, the 2025 conforming loan limit for single-family homes is $1,209,750, offering greater borrowing potential in this high-cost region.

• 🌟 Opportunities: Buyers should target motivated sellers with properties lingering on the market or poorly marketed listings, which can offer room for negotiation.

• 🎁 Holiday Advantage: Shopping during the holidays often means less competition, allowing buyers to negotiate better deals and secure favorable terms.  Check out my video here on the 4 reasons to buy during the holidays.

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REVIEWS

What is a comp?

What is considered a comp?

• A true comp is a home that is comparable in square footage, bedroom/bathroom count, lot size, style of home and the list goes on.

How many comps should you look at?

• Really as many as you want but I typically look at 5 - 10 comps when analyzing a property. Sometimes you need to look at more comps to paint the true picture of what’s going on.

How far back in time should you look?

• 3 months is ideal but you can go back 6 months. If you go back any further we are looking at a different real estate market and have to make adjustments for time

How far should you look from the property you’re interested in?

• The closer you are to the house you’re bidding on the better. I typically like to look within 1/2 mile to 1 mile. It’s OK to include a larger area to look within but always consider how it compares to the street and neighborhood of the house you’re bidding on is in.

Other key factors?

• Average Days on Market

• Median / Average Price Per Foot

• Historical Graphs to determine future appreciation

• % LP/SP (Typically what percentage of list price does the property end up selling at)

• Active Comps - You need to see how other active listings are performing

• Historical list history of subject property

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My CNN Interview on LA Real Estate

Get my take on what’s happening in LA real estate and what’s coming next. 🏠

My CNN Interview on LA Real Estate I’m thrilled to share that I was recently interviewed by CNN to discuss the state of the housing market in 2024. The article dives into how the market has slowed dramatically, particularly in Los Angeles, which has seen the lowest turnover among major metro areas. Several factors are at play here, including changes in the entertainment industry, elevated interest rates, and homeowners hesitant to sell due to their locked-in low mortgage rates. Housing affordability is at an all-time low, especially for first-time home buyers entering the market, as wages have not kept pace with home prices, making it increasingly difficult for many potential buyers.  Here are some of the main factors affecting the LA housing market:   Entertainment Industry Slowdown: Streaming service models and lasting impacts from industry strikes have significantly slowed content creation, impacting employment in LA. "Lock-in Effect": Homeowners with low mortgage rates are reluctant to sell, reducing available inventory. High Interest Rates: Elevated mortgage rates are deterring potential buyers, further slowing the market. Inflation Impact: With rising costs across the board, many buyers are feeling the pinch, as high inflation makes it harder to save for a home and manage expenses. Election Uncertainty: The upcoming election is adding to market hesitation, as political uncertainty often causes buyers and sellers to wait before making big decisions. Affordability at an All-Time Low: First-time buyers are struggling as wages haven’t kept pace with home prices, making it harder to enter the market.   My Take In my experience, the LA market isn’t entirely slowing. I’m still dealing with homes that receive multiple offers and sell within 1 to 2 weeks, especially in certain areas and price points. While the market is slower than normal, with low inventory and reduced demand, it’s more flat than collapsing. One of the key factors to watch is interest rates. If rates continue to fall, we could see a significant shift in buyer activity, as many who have been waiting on the sidelines may finally re-enter the market. Lower interest rates would make homes more affordable, which could drive demand and lead to a resurgence in sales. Next year could be a pivotal moment for the market, as falling rates may create the perfect opportunity for buyers to jump back in. However, the fate of the entertainment industry remains an important factor, especially for the local LA market.   Buying or Selling? Let's talk about my creative approach!  😎 Let's Chat! Jeremiah Vancans Real Estate Agent Vancans Group | Compass jeremiah@vancansgroup.com vancansgroup.com 310-363-1416 DRE: 01944484 REVIEWS VANCANSGROUP.COM Our mailing address is: Vancans Group | Compass 8560 Sunset Blvd, 3rd Floor  West Hollywood, CA 90069 Want to change how you receive these emails? You can update your preferences or unsubscribe from this list.

Just Listed - 1 bedroom Condo in West Hollywood for $515k

Just Listed

West Hollywood 1351 North Crescent Heights Blvd # 114 1 BD 1 BA 810 SF $515,000 Discover the essence of West Hollywood living in this stunning 1-bedroom, 1-bathroom condo, located just south of Sunset Boulevard. Spanning 810 square feet with a modern open floor plan, this home beautifully blends contemporary comfort with urban convenience. As you step inside, you're greeted by an inviting atmosphere, highlighted by floor-to-ceiling windows that fill the space with natural light and updated floors. Sliding doors open to a private balcony overlooking the sunlit pool, creating a relaxing, resort-like ambiance. The living room serves as a focal point, featuring a stylish fireplace that seamlessly connects the living, dining, and kitchen areas, making it perfect for entertaining. The sleek kitchen showcases wood cabinetry, quartz countertops, stainless steel appliances, and bar seating, catering to both style and functionality. This unit also offers built-in storage along the back wall for added convenience, complete with a wet bar.

Property Info

The well-proportioned bedroom features floor-to-ceiling windows and ample closet space, while the beautifully designed bathroom includes a large vanity with modern fixtures and generous storage. Enhancing your living experience, the condo's community amenities include a fitness center, pool, red-light therapy room, controlled access to the building, and gated assigned parking for added security and convenience. Situated in a highly walkable neighborhood, you can easily explore the vibrant surroundings, from renowned dining and shopping destinations to the iconic Sunset Strip. Trader Joe's is also conveniently located just across the street. For those seeking the quintessential West Hollywood lifestyle, this condo offers an unparalleled opportunity at an incredible price.

Schedule a showing! Contact me today

Jeremiah Vancans DRE 01944484 REALTOR® M: 310.363.1416 O: 310.299.9305 Web: vancansgroup.com EM: jeremiah@vancansgroup.com

Compass is a real estate broker licensed by the State of California operating under multiple entities. License Numbers 01991628, 1527235, 1527365, 1356742, 1443761, 1997075, 1935359, 1961027, 1842987, 1869607, 1866771, 1527205, 1079009, 1272467. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.

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Just Listed Townhouse in Silverlake Latitudes for $1,079,000

Just Listed

2753 Waverly Drive, Unit 104 2 BD 3 BA 1243 SF $1,079,000 Property Info Check out our newest listing in Silverlake! OPEN HOUSES: Saturday 4/27: 2-5pm Sunday 4/28: 2-5pm Tuesday 4/30: 11am-2pm Presenting a meticulously remodeled 2-bedroom, 2.5-bathroom townhouse nestled within the gated "Latitudes" community in Silverlake. This unit was built in 2014 and feels like a single-family home with incredible light and a great floor plan. Step into the ground floor to discover a spacious entryway adaptable for various uses, and perfect for a home office. On the second floor, abundant natural light floods through expansive windows, accentuating the high ceilings and creating an inviting space, perfect for entertaining. The open floor plan seamlessly connects the living, dining, and kitchen areas, complemented by a stylish powder room for added convenience. The kitchen is a chef's dream, featuring custom wood cabinetry, turquoise Moroccan zellige tiles, Caesarstone countertops, stainless steel Viking appliances, and a center island. The sun-drenched living room, facing south with large sliding glass doors, offers views of the hilltops below.

Two generously sized bedrooms, both located on the top floor for privacy, boast en-suite tile bathrooms with modern lighting, tile backsplashes, and custom wood vanities. The primary suite is highlighted by a large window offering incredible views, a dual vanity sink, and a spacious walk-in closet. Additional features include in-unit stackable laundry, a Nest thermostat, engineered oak wood floors, and an attached two-car garage. Community amenities include a resort-like pool and spa with outdoor showers, an automatic gate for easy access, and guest parking within the complex. This property offers a coveted location within the Ivanhoe School District and is surrounded by a lively neighborhood teeming with chic boutiques, charming dining spots, and cultural hotspots. Come make this incredible townhouse your own!

Schedule a showing! Contact me today

Jeremiah Vancans REALTOR® DRE 01944484 M: 310.363.1416 jeremiah@vancansgroup.com Renee Vancans REALTOR® DRE# 02102230 M: 714.290.4513 renee@vancansgroup.com

Compass is a real estate broker licensed by the State of California operating under multiple entities. License Numbers 01991628, 1527235, 1527365, 1356742, 1443761, 1997075, 1935359, 1961027, 1842987, 1869607, 1866771, 1527205, 1079009, 1272467. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.

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Just Listed in Hollywood Franklin Towers for $729k

Just Listed

7250 Franklin Avenue, Unit 505 1 BD 2 BA 1090 SF $729,000 Property Info Check out our newest listing in Hollywood Franklin Towers! OPEN HOUSES: Saturday 4/27: 2-5pm Sunday 4/28: 2-5pm Tuesday 4/30: 11am-2pm Step into this breathtaking 1-bed, 2-bath condo nestled just south of Runyon Canyon in the full-service Franklin Towers. Spanning a spacious 1,090 square feet and featuring an incredible open floor plan, this residence effortlessly blends contemporary comfort with urban convenience. Perched on the 5th floor, this unit offers stunning views of the canyons and hills that surround the complex. The living room becomes a focal point with its high ceilings and custom built-in shelving, seamlessly connecting the living, dining, and kitchen areas creating an ideal setting for entertainment and relaxation. The sleek kitchen boasts wood cabinetry, quartz countertops, and stainless steel appliances, catering to both style and functionality. Step outside to your private balcony, a perfect extension of your living room, offering views of the Hollywood Hills and the city below. Video

The luxurious primary suite at the end of the hallway is well-proportioned with ample closet space and a bonus nook perfect for a desk or lounge area. The primary en-suite has been fully remodeled with impeccable design and a double vanity. Additionally, the conveniently located powder room has been recently remodeled for your guests. Recent updates include a new HVAC with Nest Thermostat, LED lights, new range/hood and fresh paint. Elevating your living experience, Franklin Towers offers a comprehensive suite of amenities, including 24/7 security and concierge, a heated pool/spa, steam room, sauna, yoga room, dog run, clubhouse/rec room, gated parking, valet guest parking, as well as a rooftop gym and deck with 360-degree views that include the ocean, Downtown LA, the Hollywood Sign and Griffith Observatory! Situated in a highly walkable neighborhood, explore the vibrant surroundings with ease, from renowned dining and shopping destinations. For those seeking the quintessential Hollywood lifestyle, this condo offers resort-like living at an incredible price.

Schedule a showing! Contact me today

Jeremiah Vancans DRE 01944484 REALTOR® M: 310.363.1416 jeremiah@vancansgroup.com

Compass is a real estate broker licensed by the State of California operating under multiple entities. License Numbers 01991628, 1527235, 1527365, 1356742, 1443761, 1997075, 1935359, 1961027, 1842987, 1869607, 1866771, 1527205, 1079009, 1272467. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.

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Price Reduction - Sherman Oaks Home South of the Blvd for $2.9M

Price Reduction Open House Sunday 2-5pm

Sherman Oaks 14051 Roblar Road 4 BD 4 BA 3314 SF $2,899,000 Open House: Sunday from 2-5pm Nestled in the foothills of Sherman Oaks, just south of Ventura Blvd, sits this beautifully remodeled four-bedroom home on a picturesque street. Its prime location provides unparalleled convenience to all the shops and restaurants that Sherman Oaks has to offer. Upon entering through the foyer, you're greeted by a spacious living room with vaulted ceilings, a fireplace, and large windows that flood the space with natural light. The updated kitchen effortlessly blends style and functionality with shaker-style cabinetry, stunning countertops, a double oven, and a large island with a Wolf stovetop. This open-concept floor plan seamlessly connects the kitchen and family room to the backyard, creating an ideal setting for relaxation and entertainment. Play Video

Ascending upstairs, the private primary suite awaits, offering a tranquil sanctuary. Adorned with a fireplace, built-in cabinetry with a wine fridge, a custom walk-in closet, and a balcony overlooking the verdant treetops, it exudes a sense of serenity. The primary bath offers luxurious finishes with a dual vanity sink and expansive views of the valley below. Outside, a spacious private backyard awaits with a pool, spa, and outdoor fireplace, all surrounded by mature hedges, creating a serene oasis. This backyard provides a resort-like feel that's perfect for entertaining or unwinding after a long day. This home encapsulates the epitome of California living, offering a perfect blend of comfort, style, and unbeatable convenience.

Schedule a showing! Contact me today

Jeremiah Vancans DRE 01944484 REALTOR® M: 310.363.1416 jeremiah@vancansgroup.com

Compass is a real estate broker licensed by the State of California operating under multiple entities. License Numbers 01991628, 1527235, 1527365, 1356742, 1443761, 1997075, 1935359, 1961027, 1842987, 1869607, 1866771, 1527205, 1079009, 1272467. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.

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