The final week of July delivered encouraging gains on Wall Street, but rising bond yields, higher mortgage rates, persistent inflation and geopolitical uncertainty continue to shape the housing market. For buyers and sellers in Westlake Village, Thousand Oaks and the greater Los Angeles area, the market is clearly shifting toward a more balanced and increasingly price-sensitive environment.
Mortgage Rates Move Higher
The average 30-year fixed mortgage rate increased to 6.66%, up from 6.58% the previous week. The average 15-year fixed rate rose to 6.04%, also increasing by eight basis points. These are national averages, and actual rates vary according to credit, loan type, down payment, property and lender.
The rise in mortgage rates is closely connected to higher Treasury yields and renewed concerns that inflation may remain above the Federal Reserve’s target. The 10-year Treasury yield climbed to approximately 4.74%, while the 30-year Treasury yield reached approximately 5.27%, its highest level in nearly two decades.
For home buyers, even a modest rate increase can significantly affect purchasing power and monthly payments. Buyers should obtain a fully underwritten preapproval, compare several loan programs and consider whether an adjustable-rate mortgage, temporary rate buydown or seller credit may improve affordability.
Federal Reserve and Inflation
At its July meeting, the Federal Reserve voted to keep the federal funds rate unchanged at 3.50% to 3.75%. However, three voting members favored a quarter-point increase, signaling growing concern within the Fed that inflation could remain elevated.
The latest Consumer Price Index showed that overall inflation increased 3.5% over the 12 months ending in June, down from 4.2% in May. Energy prices remained one of the largest concerns, rising 15.7% from a year earlier, while gasoline prices increased 26.7%.
The Federal Reserve’s preferred inflation measurement, the Personal Consumption Expenditures Price Index, increased 3.7% annually in June, while core PCE, excluding food and energy, increased 3.3%. Both remain above the Fed’s 2% target.
Inflation may be cooling in certain categories, but higher energy, insurance, transportation and construction costs are making it difficult for the Fed to consider lowering rates in the immediate future.
Stocks, the Dow and the Bond Market
Stocks finished the week higher despite considerable volatility. For the week, the Nasdaq gained approximately 1.6%, while both the S&P 500 and Dow Jones Industrial Average rose about 1%. On Friday, the Dow closed at approximately 52,485, the S&P 500 at 7,489 and the Nasdaq at 25,374.
Strong corporate earnings, particularly from companies benefiting from artificial-intelligence investment, helped support the market. However, rising Treasury yields created additional pressure because higher bond yields can make stocks less attractive and increase borrowing costs throughout the economy.
The combination of rising stocks and falling bond prices reflects a divided market. Investors remain optimistic about corporate earnings and technology, while the bond market is signaling concern about inflation, government borrowing and the possibility of future interest-rate increases.
Job Market
The most recent official employment report showed that the economy added 57,000 jobs in June, while the unemployment rate remained relatively low at 4.2%. Employment gains were concentrated in professional and business services, social assistance and health care, while leisure and hospitality lost jobs.
The July employment report will not be released until August 7, 2026, so claims about July payroll growth before that date would be premature.
A stable job market generally supports housing demand because employed buyers are more confident about making major financial commitments. However, slower hiring may cause some households to delay purchasing, particularly when mortgage payments, insurance and everyday living costs remain elevated.
World Events and Their Economic Impact
Conflict involving Iran and disruptions to shipping through the Strait of Hormuz have placed renewed pressure on oil and fuel prices. Brent crude finished July near $90.12 per barrel, while West Texas Intermediate closed near $84.67. Both benchmarks posted substantial gains during July as markets reacted to supply and transportation risks.
Higher oil prices affect far more than gasoline. They can increase shipping, airline, manufacturing and construction expenses, eventually raising prices throughout the economy. Tariffs and global trade uncertainty are also contributing to concerns about future inflation and supply costs.
For housing, these developments matter because sustained inflation can keep Treasury yields and mortgage rates elevated. Higher construction, insurance and maintenance costs also affect builders, homeowners, landlords and buyers.
The Housing Market Shift
The housing market is moving away from the extremely seller-dominated conditions of recent years and toward a more balanced environment. Nationally, existing-home sales declined 2.4% in June to an annualized rate of 4.09 million. The national median existing-home price was $440,600, and available inventory represented a 4.6-month supply.
Pending home sales fell 5.4% in June, and more recent data showed pending sales declining to their lowest level since early April during the four weeks ending July 26. Home-tour activity has increased only 15% since the beginning of the year, compared with a 31% increase at the same point last year.
This does not mean desirable homes are no longer selling. It means buyers have become more selective. Properties that are properly priced, beautifully presented and located in highly desirable neighborhoods can still attract strong interest. Homes that are overpriced, need substantial work or lack effective marketing may experience fewer showings, longer market times and price reductions.
Open Houses and Buyer Purchase Offers
The shift is especially noticeable at open houses. Many open houses may still attract visitors, but attendance does not automatically translate into immediate offers. Buyers are touring more properties, comparing value carefully and taking additional time before making a commitment.
Today’s buyers are paying close attention to:
- Monthly payments and mortgage-rate changes
- Insurance availability and premiums
- Property condition and repair costs
- Recent comparable sales
- Days on market and price reductions
- Seller motivation
- HOA dues, taxes and ongoing ownership expenses
Purchase offers are also becoming more strategic. Buyers may request seller credits toward closing costs or mortgage-rate buydowns, longer inspection periods, repair allowances or greater flexibility in negotiations. Multiple offers remain possible for exceptional homes, but they are less automatic than they were during the most competitive years.
Sellers should not mistake open-house traffic for market value. The clearest indicators are the quality of the visitors, follow-up questions, second showings and actual written offers.
Westlake Village, Thousand Oaks and Los Angeles
In Westlake Village and Thousand Oaks, lifestyle, schools, open space, neighborhood quality and limited availability continue to support long-term demand. However, affordability is affecting how quickly buyers act, particularly in higher price ranges where even a small interest-rate change can substantially alter the monthly payment.
Local listings may now compete with more open-house choices. Current listing portals show dozens of advertised open houses across Westlake Village and Thousand Oaks, illustrating the growing number of options buyers may review during a single weekend.
In Los Angeles, market conditions vary significantly by neighborhood, property type, insurance exposure and price point. Updated homes in highly desirable locations can still sell quickly, while properties with deferred maintenance, unrealistic pricing or insurance challenges may remain available longer.
What Buyers Should Know
Buyers currently have more negotiating opportunities than they did during the peak seller’s market. They may have time to complete inspections, evaluate comparable sales and negotiate credits or repairs.
However, waiting for the “perfect” interest rate can be risky. A decline in rates could bring more buyers back into the market and increase competition. The better strategy is to focus on the right property, negotiate the best available terms and consider refinancing later if rates improve.
What Sellers Should Know
Accurate pricing is now one of the most important elements of a successful sale. Testing the market with an inflated price may result in reduced open-house attendance, fewer offers and a longer listing period.
Sellers should prepare the property carefully, complete appropriate repairs, use professional photography and marketing, and position the home competitively from the beginning. The strongest offers generally arrive when a property is newly listed and attracting the greatest attention.
The Bottom Line
The economy continues to expand, and stocks ended the week higher, but rising bond yields, persistent inflation, elevated energy prices and higher mortgage rates are limiting housing affordability.
This is not a market in which buyers or sellers should rely on outdated assumptions. It is a market that rewards preparation, realistic pricing, strong negotiation and neighborhood-specific information.
Whether you are considering buying, selling or investing in Westlake Village, Thousand Oaks or Los Angeles, understanding the value of the property and the conditions within its specific neighborhood is essential.
Contact Tina Lucarelli (310) 738-8089, with The ONE Luxury Properties for a personalized market analysis, strategic home-selling plan or buyer consultation. Let’s evaluate your options and create a real estate strategy designed for today’s changing market.
