The Federal Reserve made a significant move today, September 16, raising its benchmark federal funds rate by a quarter of a percentage point to a target range of 3.75% to 4.00%. The decision was unanimous and marks the Fed’s first rate increase in three years.
The reason? Inflation remains elevated.
The Federal Reserve stated that economic activity continues to expand at a solid pace, domestic spending has remained resilient, productivity growth is strong, and capital investment remains robust. At the same time, policymakers remain focused on bringing inflation back toward the Fed’s 2% goal.
For homeowners and prospective buyers, however, there is an important distinction: The Federal Reserve does not directly set mortgage rates.
Mortgage rates are influenced heavily by the bond market, inflation expectations and the broader economy. That means a Fed rate increase does not automatically translate into an identical increase in mortgage rates.
As of September 10, Freddie Mac reported that the average 30-year fixed mortgage rate was 6.76%, while the average 15-year fixed rate was 6.09%.
So what does all of this mean if you're thinking about buying or selling a home in Westlake Village, Thousand Oaks, Agoura Hills or Los Angeles?
Why Buyers Should Pay Attention Right Now
Higher mortgage rates can certainly affect affordability, but they can also change the negotiating environment.
When rates rise, some buyers temporarily move to the sidelines. That can mean less competition for the buyers who remain in the market. Instead of waiting for the "perfect" interest rate—which no one can reliably predict—qualified buyers may find opportunities to negotiate price, credits, repairs, closing costs or even a seller-paid interest-rate buydown.
And remember: You can refinance a mortgage if rates decline in the future, but you cannot go back and buy yesterday's house at yesterday's price.
In markets such as Westlake Village, Thousand Oaks and Agoura Hills, buyers are purchasing much more than four walls. Schools, neighborhoods, outdoor recreation, access to Los Angeles and the coast, and the overall Conejo Valley lifestyle continue to make these communities highly desirable.
Current data also shows why buyers shouldn't assume every local market is behaving the same way. In Westlake Village, the median sale price over the three months ending August was approximately $1.45 million, up 5.4% year over year, while homes took a median 50 days to sell compared with 36 days a year earlier. That combination—higher prices but longer marketing times—can create negotiating opportunities for buyers while still demonstrating underlying property-value strength.
Why Sellers May Have an Opportunity Too
For sellers, today's market requires a different strategy than the frenzy of several years ago.
Buyers have become more payment-conscious and selective. That makes pricing, preparation, presentation and marketing more important than ever.
The good news is that serious buyers haven't disappeared.
California's statewide median single-family home price reached approximately $901,420 in August, essentially unchanged from a year earlier, while the Los Angeles Metro area's median was approximately $850,000, up 1.2% year over year.
For homeowners in desirable communities such as Westlake Village, Thousand Oaks and Agoura Hills, a properly prepared and strategically priced property can still attract buyers. Sellers who have accumulated substantial equity over the years may also be in an excellent position to make their next move, whether that means downsizing, relocating, purchasing another property or simply cashing out accumulated equity.
Waiting for mortgage rates to fall isn't necessarily a guaranteed advantage for sellers. If rates eventually decline substantially, more buyers may enter the market—but more homeowners may also decide to list their properties, potentially increasing competition among sellers.
What About Los Angeles?
The Los Angeles market remains highly neighborhood-specific. Buyers shouldn't assume that one headline describes everything from Woodland Hills to Malibu, the Westside, the San Fernando Valley or Downtown Los Angeles.
The latest California Association of Realtors data shows Los Angeles Metro prices were modestly higher year over year in August even as sales activity softened. That tells us this isn't simply a "buyers' market" or a "sellers' market." It is a strategy-driven market.
The best opportunities may be found property by property.
Don't Try to Time the Market—Create a Strategy for It
There will always be a reason to wait.
Buyers may wait for lower interest rates. Sellers may wait for higher prices. Investors may wait for a better deal.
But real estate decisions should ultimately be based on your personal finances, housing needs, timeline and long-term objectives—not one economic headline.
For buyers, today's environment may provide negotiating opportunities that weren't available when multiple offers were driving properties dramatically above asking price.
For sellers, limited desirable inventory and continued demand for well-located, beautifully presented homes can still create strong opportunities—provided the home is positioned correctly from day one.
And if rates eventually move lower, today's buyer may have the opportunity to refinance. If lower rates bring substantially more buyers back into the market, however, today's negotiating leverage could disappear.
Thinking About Buying or Selling?
Every neighborhood—and every property—is different.
If you're considering buying or selling a home in Westlake Village, Thousand Oaks, Agoura Hills, Calabasas, Malibu or the greater Los Angeles area, I can help you look beyond the headlines and evaluate what's actually happening in your specific neighborhood and price range.
Whether you're wondering what your home is worth, trying to determine the right time to list, or searching for a buying opportunity, let's put together a strategy based on your goals—not market fear or speculation.
Tina Lucarelli | REALTOR® (310) 738-8089
Luxury Real Estate Advisor
Westlake Village • Thousand Oaks • Agoura Hills • Los Angeles
