Economic Update (as of February 21, 2026)

Covering: housing, stocks, bonds, jobs, inflation, and mortgage rates — plus what it means for home buyers and sellers nationally and here in Westlake Village, Thousand Oaks, and Los Angeles.

1) Inflation & the Fed: cooling headline, sticky “core”

• Inflation is easing: CPI is up 2.4% year-over-year (January 2026).

• Core CPI (excluding food/energy) is running around 2.5% YoY, which matters because it influences how quickly the Fed feels comfortable cutting rates.

• The Fed’s preferred measure, PCE, has been hotter recently (December data showed core PCE around 3% YoY), reinforcing the “higher-for-longer” vibe even as headline inflation improves.

Why it matters for real estate: Mortgage rates can improve when inflation cools, but “sticky core” inflation can keep long-term rates from dropping quickly.

2) Jobs: still growing, but slower and more selective

• The U.S. added about 130,000 jobs in January, and unemployment is ~4.3%.

• Weekly jobless claims recently fell near 206,000, suggesting the labor market is holding steady.

Why it matters for buyers/sellers: A stable job market supports buyer confidence and loan qualification, but slower hiring can make buyers more cautious—especially in higher price points.

3) Mortgage rates & bonds: 

• Freddie Mac shows the 30-year fixed averaged 6.01% (Feb 19, 2026); 15-year averaged 5.35%.

• The 10-year Treasury yield is around 4.08%–4.09% lately—important because it heavily influences mortgage pricing.

Real-world impact: Rates in the low 6% range are meaningfully better than last year, but affordability still depends on price, down payment, HOA/insurance, and taxes.

4) Stock market: resilient, but headline-driven

Markets have been moving on policy/news (tariffs, inflation prints, geopolitical headlines). On Feb 20, 2026, major indexes closed higher:

• S&P 500: 6,909.51

• Dow: 49,625.97

• Nasdaq: 22,886.07

Why it matters for housing: Stocks affect down-payment confidence (especially for move-up and luxury buyers). When portfolios rise, buyers tend to feel more comfortable making big lifestyle moves.

5) National housing: fewer closings, tight inventory, price pressure

Key national signals:

• Existing-home sales: down 8.4% in January to a 3.91M annual rate.

• Inventory: about 1.22M homes, roughly 3.7 months’ supply (still tight).

• Pending home sales: down 0.8% in January (contracts signed), index 70.9.

• New home sales: December ran about 745,000 annualized; median price was roughly $414,400.

The big takeaway: Even as rates improve, the market remains constrained by limited resale supply, which helps keep prices supported in many areas.

Local snapshot: Westlake Village • Thousand Oaks • Los Angeles

Westlake Village (January 2026)

• Median sale price: ~$2.38M

• Days on market: ~93

Interpretation: High-end buyers are active, but they’re patient and value-driven. Pricing and presentation matter more than ever.

Thousand Oaks (January 2026)

• Median sale price: ~$1.005M

• Days on market: ~84

Interpretation: More negotiation leverage than the “peak frenzy” years—especially for homes needing updates or priced aspirationally.

Los Angeles (City) (January 2026)

• Median sale price: ~$975K

• Days on market: ~80

Los Angeles County (January 2026)

• Median sale price: ~$879K

• Days on market: ~69

Interpretation: The LA market is highly neighborhood-specific right now—some pockets are competitive, others are slower. Accurate comps and strategy are everything.

What this means right now

For home buyers

• More choices and more time than in the ultra-tight years, but good homes still win (especially renovated, well-located, correctly priced).

• With rates around 6.01%, focus on:

  • Seller credits/rate buydowns where possible,

  • Choosing the right loan structure,

  • Negotiating repairs/credits using inspection leverage (not emotion).

For home sellers

• You can’t rely on “automatic multiple offers.” Today’s buyer expects:

  • Clean condition,

  • Strong photography + marketing,

  • Sharp pricing tied to current comps,

  • and clear value versus alternatives.

• In slower submarkets, price reductions happen when the launch price is too ambitious—the best strategy is to price it right from day one and create urgency.

Call to action

If you’re thinking about buying or selling in Westlake Village, Thousand Oaks, or anywhere in Los Angeles, I’ll map out a clear plan based on your goals: pricing, timing, loan strategy, and a step-by-step game plan to win (or to net top dollar).

Reach out, and I’ll put together a custom market snapshot + strategy for your neighborhood and price range.

Tina Lucarelli - Realtor - The ONE Luxury Propertery - DRE 02102354