Waiting for Lower Mortgage Rates Could Cost Los Angeles Homebuyers More
News related to:Anna Kara Loans · 2 min read
Anna Kara Loans, a boutique mortgage firm in Burbank, California, warns first-time homebuyers in Los Angeles that waiting for lower mortgage rates could be more costly than anticipated. The firm's founder, Anna Kara, advises buyers to focus on factors they can control, such as down payments and financial preparedness, rather than speculating on future rate changes.
According to the California Association of REALTORS (C.A.R.), the median price of an existing single-family home in Los Angeles County reached $946,950 in August 2026, marking a 1.7% increase from the same period a year earlier. Simultaneously, the average 30-year fixed mortgage rate rose to 6.67% in August 2026, up from 6.59% in August 2025. Kara notes that neither of these figures offers a clear indication of future trends.
Kara, who hears the rate question more frequently than any other, advises buyers to consider the risks associated with waiting for rates to drop.
Kara emphasizes that the two risks are fundamentally different.
The effect of a rate change varies significantly based on the loan amount, term, loan program, borrower profile, and other costs. Buyers can run different scenarios to see how rate, purchase price, and down payment affect their estimated monthly payments. Kara points to three key factors that may materially affect affordability, loan eligibility, or pricing, all of which are closer to the borrower than to the market.
First, down payment requirements can vary widely. Some conventional loan programs allow qualified buyers to purchase with as little as 3% down, while FHA-insured financing can go as low as 3.5%. This reshapes the entry point for anyone who assumed 20% was the price of admission.
Second, there are numerous assistance programs available. For example, the California Housing Finance Agency offers down payment help for eligible homebuyers. Eligibility varies by program and can depend on household income, property location, first-time or first-generation homebuyer status, and other requirements.
Third, the file itself, credit, documented income, and reserves left after closing, plays a crucial role.
The decision to buy or wait ultimately depends on the borrower's financial position, timeline, and goals. "Plenty of people should wait," Kara said.
Anna Kara Loans works with borrowers across Burbank, Glendale, Pasadena, Studio City, Sherman Oaks, and North Hollywood. The firm provides conventional, jumbo, FHA, FHA 203(k), HELOC, USDA, reverse, and non-QM lending across Los Angeles County and California, with access to more than 178 lenders.