Welcome to my June newsletter, where I bring you the latest mortgage rate trends, economic updates, and insights on the Los Angeles mortgage rates and housing market.
Mortgage Rate Update & Fed Outlook
Current Mortgage Rates & Projections
Mortgage rates have remained in the same range for the past few months. The national average for a 30-year fixed mortgage is now 6.94%, with 15-year fixed rates averaging around 6.00%. While rates dipped slightly earlier this spring, they have hovered near the 7% mark for much of the year. Most experts expect this stability to continue through June. That said, I do have loan products available well below the national average.
Here’s a snapshot of current rates on our top loan products:
• 5.55% on 7YR jumbo ARMs up to $20M with verified income documentation and banking relationship.
• 5.72% on 10YR jumbo ARMs up to $10M with verified income documentation, no banking relationship required.
• Bank statement loan rates vary from the mid-6% to low 7% range, depending on loan-to-value (LTV) ratios and creditworthiness.
Federal Reserve Policy & June Meeting Prediction
At its May 7 meeting, the Federal Reserve kept the federal funds rate steady at 4.25%-4.50% for the third consecutive time. Looking ahead to the next Fed meeting on June 17-18, most experts, including myself, predict that the Fed will once again hold rates steady. As I mentioned last month, recent economic data and statements from Fed officials suggest that policymakers are in “wait and see” mode, closely monitoring inflation and labor market trends. While there was earlier speculation about a possible rate cut in June, the consensus now points to the first rate reduction coming later in the summer or early fall, possibly at the July or September meetings if inflation continues to moderate.
Jobs Report
The U.S. labor market remains steady, with employers adding 139,000 jobs in May, slightly above expectations. The unemployment rate held at 4.2% for the third straight month, reflecting a resilient job market despite ongoing economic headwinds from tariffs and federal workforce reductions. It’s also interesting to note that job numbers have been revised down over the last three months by 116,000, which, in my humble opinion, is a sign of a much softer job market than what we are seeing in the media and helps support an interest rate cut later this summer.
California’s unemployment rate remains steady at 5.3%. While higher than the national number, California has experienced only a 0.1% increase in unemployment since April 2024.
Local Activity & Recent Transactions
The Los Angeles area housing market continues to show resilience, with the median sale price rising to $871,700 in May 2025, a 3.5% year-over-year increase. Inventory has also grown, with 4,747 homes for sale in May, up 8.7% from April. However, sales volume dipped, with 778 homes sold or pending in May, a 13.1% decline from the previous month.
Recent Closed Loans
Here are a few recent deals I have closed using my network of institutional and private lenders to get the deal over the finish line.
New Home Purchase | Rancho Santa Fe | $4.8M
80% LTV financing
10YR ARM 5.75% interest rate | 5.86% APR
Complicated file: 36 months corporate tax returns used for qualifying
Cash-Out Refi | Manhattan Beach | $2.5M
65% LTV financing
6.75% interest rate | 6.86% APR
All cash out
CPA prepared profit & loss report, no bank statements
New Home Purchase | Manhattan Beach | $9.2M
80% LTV financing
10YR interest-only ARM
5.91% interest rate | 6.02% APR
Full income documentation
Duplex Purchase | Mid City | $1.25M
95% LTV financing
Closed in 17 days
30YR fixed rate fixed rate
6.5% interest rate | 6.625% APR
Full income documentation
National Housing & Economic Reports to Monitor in June:
June 18 – Fed Interest Rate Decision, Building Permits, and Housing Starts
June 23 – Existing Home Sales Data
June 25 – New Home Sales Report
June 26 – Pending Home Sales Statistics
Whether you’re a first-time buyer or looking to make your next move, I’m here to offer dedicated support and expert guidance every step of the way. I’m always available to assist, and with the backing of a skilled team that’s been with me for over 20 years, we work efficiently to ensure your transaction is completed smoothly and promptly.
If you’re considering buying, selling, or refinancing, please don’t hesitate to reach out. I would be happy to discuss a strategy tailored specifically to your goals.
Mark Cohen