Welcome to my August newsletter. This week brought a fresh jobs report, and there is a lot to unpack this month. From what is happening with oil prices and the Middle East to what it all means for buyers and sellers in Los Angeles right now. The short version: rates are higher than we would all like, but deals are getting done, and serious buyers have more opportunity in this market than the headlines suggest.
Mortgage Rates August 2026
Nationally, mortgage rates ticked up again this week. The 30-year fixed averaged 6.69% as of August 6, according to Freddie Mac, continuing a five-week climb and sitting at the highest level since last summer. The benchmark 10-year Treasury yield has also moved higher, which is the main driver of where 30-year fixed rates land. (See our local rates below, which are lower).
The reason rates have been rising comes back to the same story we have been watching all year: oil prices and uncertainty in the Middle East. After a peace agreement between the US and Iran showed real promise earlier this summer and oil prices dropped meaningfully in response, the situation deteriorated again in July.
As of this week, oil is hovering around $82 per barrel, and negotiations over shipping lanes through the Persian Gulf remain unresolved. Until there is a durable, lasting resolution, expect rates to remain range-bound or subject to sudden moves in either direction. When that resolution comes and oil prices settle back toward pre-conflict levels, the path to lower rates becomes much clearer. That is still the number I am watching.
The Federal Reserve held rates steady at its July 29 meeting, but the tone was notably firm. The Fed is not raising rates yet, but it is not cutting them either. Their next meeting is September 15–16, and incoming inflation data, starting with the August 12 CPI report, will shape expectations heading into that decision.
Here is where local rates stand this week:
• 5.5% on 7-year jumbo ARMs up to $5M with full income documentation, depending on LTV and credit
• 5.75% on 10-year jumbo ARMs up to $5M with full documentation, varying by structure and profile
• Bank-statement loans for self-employed borrowers remain in the mid-to-high 6% range
Jobs & The Labor Market
The July U.S. jobs report, released August 7, showed the economy lost 23,000 jobs in July, and the unemployment rate improved slightly to 4.1%. Wage growth came in at 3.2% year-over-year, the softest reading of the year.
The job loss was almost entirely driven by a drop in local government education employment, which reflects a seasonal timing issue in the data rather than any real weakness in the broader economy. Healthcare continued adding jobs steadily, as it has all year.
Also released this week, the June JOLTS report showed there are still 7.4 million job openings across the country, a slight dip from last month but still a healthy number. Employers are still hiring. Workers are still finding jobs.
The bigger takeaway is that the labor market is cooling gradually, which is actually a positive sign for rates over time. A more balanced job market reduces wage inflation pressure, which is one of the things the Fed watches most closely. It does not mean cuts are coming tomorrow, but it moves things in the right direction.
Los Angeles Housing: More Choices, More Negotiating Room
The Los Angeles market has a median list price of $1,165,000 and 12,247 active listings as of June 2026, with inventory essentially flat year-over-year per Realtor.com. The median sold price was $1,048,500, and homes are taking a median of 52 days to sell.
The opportunity right now is for buyers who are prepared and working with a lender who can move quickly when the right property appears.
Recently Closed Loans
Home Purchase | Sherman Oaks | $9.5M
80% LTV financing
7 YR ARM interest-only
5.6% interest rate | 5.75% APR
Most banks cap 80% LTV financing at loan amounts of $3M or less. We secured 80% LTV financing above that threshold for this high-leverage borrower.
Home Purchase | Pasadena | $4.2M
80% LTV financing
Interest-only loan
6.75% interest rate | 6.878% APR
This high-leverage borrower needed an interest-only loan without relying on tax returns. We qualified the client using 12 months of bank statements and closed in 25 days.
Home Purchase | Venice | $3.1M
70% LTV financing
7 YR ARM
5.81% interest rate | 5.92% APR
With a 670 credit score, the borrower would not typically qualify for the most aggressive pricing. Through our banking relationship, we secured A-paper financing at a below-market rate.
Investment Property Cash-Out Refinance | Encino | $2M
70% LTV financing
$2M loan amount
6.75% interest rate | 6.88% APR
We completed a $2M cash-out refinance on an Encino investment property at 70% LTV financing, with approval based on rental income rather than tax returns or bank statements. The loan closed in less than 21 days.
Condo Purchase | West Hollywood | $975K
75% LTV financing
30 YR fixed rate loan
6.5% interest rate | 6.625% APR
Most banks would not lend until the building’s balcony repairs were completed. We navigated the property condition issue and secured financing without delaying the transaction.
Key Dates This Month
August 11: Existing Home Sales
August 12: Consumer Price Index for July
August 18: Building Permits, Housing Starts & Pending Home Sales
August 28: Jackson Hole Economic Symposium begins
How I Can Help
More inventory, more motivated sellers, and ARM rates still well below fixed rates. That is the environment buyers are working with right now. Rates will not stay elevated forever, and the buyers who are pre-approved and ready to move when conditions shift are the ones who get the best outcomes.
Reach out any time for updated rate quotes, a scenario analysis on a specific property, or a straight conversation about how this market affects your plans.
Sincerely,