The week ending May 9, 2026, was another volatile one for the economy, financial markets, and real estate. Ongoing tensions involving Iran, rising oil prices, stubborn inflation, and uncertainty around future Federal Reserve policy continue to shape the housing market and consumer confidence across the country — including here in Westlake Village, Thousand Oaks, and Los Angeles.
Despite global uncertainty, the stock market showed resilience this week. The Dow Jones Industrial Average, S&P 500, and Nasdaq all posted gains after stronger-than-expected job numbers reassured investors that the U.S. economy is still holding up. The Dow remained near record highs while tech stocks continued to lead the market higher.
At the same time, bond yields climbed as investors reacted to inflation concerns tied to the war in Iran and rising oil prices. The 10-year Treasury yield moved higher this week, which directly impacts mortgage rates. Mortgage rates followed suit, with the average 30-year fixed mortgage climbing to approximately 6.37%–6.50%.
The conflict in the Middle East continues to play a major role in the economy. Concerns surrounding the Strait of Hormuz and global oil supplies pushed oil prices back above $100 per barrel this week. Higher oil prices increase transportation and manufacturing costs, which fuels inflation throughout the economy.
Inflation remains one of the Federal Reserve’s biggest concerns. While inflation has moderated from prior peaks, elevated energy prices and continued consumer spending are keeping pressure on the Fed to hold interest rates higher for longer. Recent job reports showed employers still adding jobs, signaling a labor market that remains relatively strong. The U.S. added approximately 115,000 jobs last month, which came in better than expected.
For homebuyers, higher mortgage rates continue to challenge affordability — especially in luxury and higher-priced markets like Westlake Village and Los Angeles. Monthly payments remain significantly higher than they were just a few years ago, causing some buyers to pause or reduce their purchase budgets. However, inventory has improved slightly, giving buyers more choices and negotiating opportunities than we saw during the ultra-competitive pandemic years.
For home sellers, correctly pricing a property has become more important than ever. Well-prepared homes in desirable neighborhoods throughout Westlake Village, Thousand Oaks, and parts of Los Angeles are still attracting serious buyers, especially when homes show well and are priced strategically. However, buyers today are more cautious, payment-sensitive, and selective due to elevated interest rates and economic uncertainty. Homes that are overpriced are sitting on the market longer and seeing more price reductions.
The luxury housing markets in areas like Westlake Village and Thousand Oaks continue to benefit from strong long-term demand, lifestyle appeal, excellent schools, and buyers relocating from other parts of California. However, many buyers are watching mortgage rates closely and waiting for additional economic stability before making major decisions.
Looking ahead, much depends on inflation data, oil prices, geopolitical developments, and whether the Federal Reserve believes inflation is cooling enough to eventually reduce rates later this year. Until then, volatility will likely remain part of both the financial markets and the housing market.
For buyers, this market can still present opportunities — especially with increased inventory and less competition than previous years. For sellers, presentation, preparation, and pricing strategy are critical to maximizing value in today’s shifting market.
If you are thinking about buying, selling, investing, or simply want to understand how today’s economy affects your home value and real estate goals in Westlake Village, Thousand Oaks, Agoura Hills, or Los Angeles, now is the time to have a strategic conversation. The right guidance and timing can make all the difference in today’s market.
