The first week of April brought a sharp reminder that world events can change the economy overnight. Between rising tensions with Iran, higher oil prices, stubborn inflation, and another jump in mortgage rates, buyers and sellers in Westlake Village, Agoura Hills, Thousand Oaks, and Los Angeles are feeling the effects.
The conflict in Iran and the closure of the Strait of Hormuz continue to dominate the economic picture. Roughly 20% of the world’s oil supply moves through that region, and oil prices climbed above $110 per barrel this week. Higher energy costs are beginning to push up transportation, food, and consumer prices again. Economists are warning that if the conflict continues, California could see higher gasoline prices and more inflationary pressure through the spring.
Stocks were extremely volatile this week. The market recovered some ground after several difficult weeks, but investors remained cautious. For the week ending April 4:
- The Dow Jones Industrial Average gained nearly 3%
- The S&P 500 rose about 3.4%
- The Nasdaq climbed roughly 4.4%
However, all three indexes remain below their January highs as investors worry about inflation, war, and interest rates.
The Dow briefly moved back above 46,500 during the week after optimism that tensions in the Middle East might ease, but those gains faded as the war escalated again.
The bond market also reflected growing concern about inflation. Treasury yields moved higher for most of the week before easing slightly late Thursday. The 10-year Treasury yield, which strongly influences mortgage rates, stayed near 4.3% after touching approximately 4.44% the previous week. Rising bond yields tell us investors expect inflation to remain elevated and believe the Federal Reserve may keep interest rates higher for longer.
Mortgage rates rose again for the fifth straight week. Freddie Mac reported the average 30-year fixed mortgage rate climbed to approximately 6.46%, while the Mortgage Bankers Association showed rates near 6.57%, the highest level since last summer. Since the war began in late February, mortgage rates have risen almost half a percent.
Inflation concerns are back. Higher oil and fuel costs are pushing prices upward again, making it less likely the Federal Reserve will cut rates anytime soon. Many economists now expect the Fed to keep rates steady through much of 2026 unless the economy weakens more sharply.
The job market, however, remains relatively stable. March job growth came in stronger than expected, with approximately 178,000 jobs added and unemployment holding near 4.3%. A stronger labor market is good for the economy, but it also gives the Federal Reserve less reason to lower rates quickly.
So what does all of this mean for the housing market in Westlake Village, Agoura Hills, Thousand Oaks, and Los Angeles?
Higher mortgage rates are slowing buyer activity, especially among first-time buyers and those who are more payment-sensitive. Homes that are priced too aggressively are sitting longer, and buyers are becoming more selective.
At the same time, luxury markets like Westlake Village, North Ranch, Lake Sherwood, and parts of Agoura Hills remain relatively strong because many buyers in those areas have larger down payments or pay cash. Sellers with well-prepared, move-in-ready homes are still seeing strong activity and, in some cases, multiple offers.
For middle-price homes in Thousand Oaks and Los Angeles, the higher rates are creating more negotiation and fewer bidding wars. Buyers have more choices than they did last year, and sellers may need to be more flexible with pricing, repairs, or credits.
Overall:
- Home prices in premium neighborhoods are likely to stay relatively stable.
- Mid-range homes may see slower appreciation or slight price reductions if rates remain above 6.5%.
- Sales volume will likely remain lower than normal this spring because many homeowners are reluctant to give up their older, lower mortgage rates.
- Buyers who stay active may find better opportunities and less competition than they faced in 2024 and 2025.
For sellers in Westlake Village, Agoura Hills, Thousand Oaks, and Los Angeles, preparation and pricing matter more than ever. Homes that are staged beautifully, marketed aggressively, and priced correctly are still selling. Homes that are overpriced may sit and require reductions.
For buyers, this market can actually create opportunity. Less competition means more room to negotiate price, repairs, and seller credits. If rates eventually come down later this year, many buyers may be able to refinance.
No matter which side of the market you are on, this is a time to make informed decisions and have a strategy.
If you are thinking about buying or selling in Westlake Village, Agoura Hills, Thousand Oaks, or Los Angeles, I would love to help you understand what today’s changing economy means for your home and your goals. Reach out anytime for a personalized market update, pricing strategy, or home value review.
