Mortgage Rates Drop, But Buyers Hit Pause — Should You

by Frances Baldwin

Mortgage Rates Dip, But Buyer Hesitation Continues — Is It Time to Make Your Move?

Mortgage rates may be sliding down, but many buyers are still holding back. According to Freddie Mac, 30-year fixed mortgage rates averaged 6.76% in the week ending May 1, slightly down from 6.81% the week before. That’s in line with the 2025 average so far—yet uncertainty around the economy is keeping both buyers and sellers cautious.

Much of the hesitation stems from volatility in the bond market, where mortgage rates generally follow the 10-year Treasury yield. A mix of economic signals—trade tensions, inflation concerns, and foreign investment shifts—has made the path forward murky.

Despite lower rates, mortgage applications dropped for the second week in a row. Redfin reports that home tours and buyer activity are down 2% year-over-year, and pending sales in April were down nearly 3%.

As Redfin Premier agent Bliss Ong put it, “Many people want to ride out this period of economic uncertainty before making such a huge financial decision.”

But here’s the thing—when most people are waiting, that’s often when the best deals show up.

What’s Happening in Los Angeles?

In LA County, the median home price in April 2025 dropped to $1,012,000, down from $1,025,000 in March. Housing inventory rose across the board:

1-bedrooms: +19.3%
2-bedrooms: +7.5%
3-bedrooms: +7.1%
4-bedrooms: +11.3%
5-bedrooms: +17.9%

That means more options—and potentially more leverage for buyers.

In April, 871 homes sold or went pending in Los Angeles, a 16.4% increase from March. Interestingly:

45.4% sold above asking price
17% sold at asking
38% sold below asking

Homes are sitting on the market an average of 36 days, up nearly 19% from last year—another signal that buyers have some breathing room.

What This Means for You

If you’ve been on the fence, now could be your window. Lower interest rates, rising inventory, and seller flexibility can add up to serious opportunity. But navigating this market takes strategy.

That’s where we come in.

We’re a boutique real estate and financing company that helps clients shop the best rates, whether it's a conventional home loan, investment property financing, or even private money solutions. We’re here to guide you every step of the way—from browsing to closing.