Rates & Market Insights with Adam Liebross

Hey everyone,

The real estate market is always changing, and it can be tough to keep up—especially with everything going on in the economy right now. That’s why I reached out to Adam Liebross, Senior Loan Officer at PNC, to break down the latest insights on mortgage rates, job growth, and what it all means for buyers. Adam’s got the inside scoop on how these trends might affect your next move, and I’m excited to share his take with you.

Adam, we’ve seen job growth in recent reports. Can you tell us what this means for buyers?

Sure thing! We’ve had some positive movement in the job market, especially with the April jobs report showing a gain of 177,000 jobs, which exceeded expectations. The unemployment rate is holding steady at 4.2%, and wage growth is up by 3.8% year-over-year. This is a good sign for buyers, because a stable job market means more people are feeling secure in their finances, which translates to more confidence in making big decisions, like buying a home.

Speaking of the economy, what does the recent inflation data tell us about the future of mortgage rates?

Inflation is heading in the right direction, but it’s not quite there yet. The March Core PCE inflation rate came in at 2.6%, which is down from 3.0% in February, marking the lowest level we’ve seen since March 2021. So, while we’re seeing some good progress, it’s a slow burn. This is important for mortgage rates because the Fed will likely stay cautious with rate cuts until inflation is more under control. But, if the economy slows down further, we could see mortgage rates soften as the year goes on, which could help buyers with affordability later in 2025.

How is the housing market performing in Greater Los Angeles right now?

In LA, things are holding steady, which is great for buyers and sellers alike. The median home price is just under $980,000, showing a 1.4% increase year-over-year. It’s not a huge jump, but it’s consistent. Inventory is up by about 18% compared to last year, so buyers have more options, and the median days to pending is 26 days, meaning homes are still selling quickly. It’s a good time to buy, especially with more inventory to choose from, but you’ll want to act fast on the right property.

With rates holding steady, what can buyers expect in terms of mortgage options?

Rates have been pretty stable recently, despite all the economic shifts. For example, the 30-year fixed mortgage is hovering around 6.625%, and jumbo loan rates are around 6.750%. If you’re looking at adjustable-rate mortgages, the 7-year ARM is at 6.000%, and the 10-year ARM is at 6.250%. These rates are solid for buyers, and the stability allows you to make an informed decision when it comes to choosing a mortgage. It’s a good time to lock in rates now while they’re steady.

What should buyers know about the broader economic outlook and how it could affect mortgage rates?

The economy is in a bit of a mixed bag right now. We had a slight dip in GDP for Q1 2025—down 0.3%—but that was mostly driven by a huge increase in imports ahead of tariffs, which slowed down overall economic momentum. On the positive side, we’re seeing good job growth and inflation trending in the right direction. This all points to the Fed staying cautious with rate cuts. If the economy doesn’t pick up much steam, we could see mortgage rates ease up as we move later into 2025, which would make it easier for buyers to afford homes.

For sellers, what’s the outlook in today’s market?

Sellers are still in a pretty strong position, especially if they price their homes appropriately. With more homes available, buyers have a bit more choice, but demand is still solid. The market has leveled off a bit, but there’s still a lot of competition for well-priced properties. As inflation cools and rates stabilize, we could see conditions improve for both buyers and sellers as we head into the second half of the year.

Any final advice for buyers considering entering the market?

It’s a good time to be a buyer, especially with the increased inventory and stable rates. You’re in a stronger position than last year when inventory was tight. While rates may not drop significantly right away, there’s potential for things to ease up in the latter part of the year. It’s all about staying informed, getting pre-approved, and working with a great mortgage lender to find the best deal for your situation.

The economy is in a bit of a mixed bag right now. We had a slight dip in GDP for Q1 2025—down 0.3%—but that was mostly driven by a huge increase in imports ahead of tariffs, which slowed down overall economic momentum. On the positive side, we’re seeing good job growth and inflation trending in the right direction. This all points to the Fed staying cautious with rate cuts. If the economy doesn’t pick up much steam, we could see mortgage rates ease up as we move later into 2025, which would make it easier for buyers to afford homes.

For sellers, what’s the outlook in today’s market?

Sellers are still in a pretty strong position, especially if they price their homes appropriately. With more homes available, buyers have a bit more choice, but demand is still solid. The market has leveled off a bit, but there’s still a lot of competition for well-priced properties. As inflation cools and rates stabilize, we could see conditions improve for both buyers and sellers as we head into the second half of the year.

Any final advice for buyers considering entering the market?

It’s a good time to be a buyer, especially with the increased inventory and stable rates. You’re in a stronger position than last year when inventory was tight. While rates may not drop significantly right away, there’s potential for things to ease up in the latter part of the year. It’s all about staying informed, getting pre-approved, and working with a great mortgage lender to find the best deal for your situation.