Understanding Today’s Mortgage Rates in Los Angeles: Will We See 3% Again?

In recent months, many buyers in Los Angeles and Beverly Hills have hit the pause button, hoping mortgage rates might dip back to the ultra-low 3% range seen in 2020 and 2021. But let’s set the record straight: those rates were never sustainable. They were an emergency response to an unprecedented global crisis—and not a baseline we’re likely to see again.

The Reality of 3% Mortgage Rates

The 3% interest rates during the early pandemic years gave buyers a powerful edge—especially in high-cost markets like Beverly Hills, Bel Air, and West Hollywood, where every basis point on a mortgage rate significantly impacts affordability. However, those rates were artificially suppressed by federal economic policy to stimulate activity during an economic emergency.

Fast forward to 2025, and the economic landscape has shifted. The Fed has ended its pandemic-era support, inflation has moderated, and rates have normalized. Today, mortgage rates hover in the mid-to-high 6% range, and while modest drops are forecasted, most experts agree: 3% isn’t coming back.

As Kara Ng, Senior Economist at Zillow, explains:

“While Zillow expects mortgage rates to end the year near mid-6%, barring any unforeseen shocks, that path might be bumpy.”

What Beverly Hills and Los Angeles Buyers Should Know

If you're waiting for mortgage rates to fall to 3%, you could be sitting on the sidelines for a very long time—while property values in LA continue to rise. In elite neighborhoods like Holmby Hills, Brentwood Park, and the Bird Streets, luxury real estate is a long-term asset, and buyers with vision are acting now rather than waiting for an uncertain drop in rates.

Instead of delaying your dream home purchase, here's what you can control:

• Strengthen your credit score

• Work with a trusted mortgage advisor or lender

• Explore creative financing strategies

• Partner with a top Los Angeles real estate agent who knows how to negotiate in this market

As inventory increases and home prices stabilize, we are seeing more opportunities for well-prepared buyers. And when rates do dip slightly, you’ll already be in a strong position while others scramble to re-enter the market.

Why Buying Now Still Makes Sense in Beverly Hills

If mortgage rates fall even modestly, competition will return quickly—especially in highly desirable luxury enclaves. Acting now gives you an early mover advantage. You’ll face less bidding pressure, have more homes to choose from, and avoid the price appreciation that often follows rate drops.

As Realtor.com puts it:

“Staying out of the market in hopes of a rate drop that never comes can lead to missed opportunities . . . Rising home prices, rent increases, and inflation might outpace any future savings on interest.”

Bottom Line

The 3% mortgage rates were the exception—not the norm. Today’s high 6% rates are part of a new reality, especially in premium markets like Los Angeles and Beverly Hills, where real estate is driven by long-term vision, not short-term rate speculation.

Instead of waiting for a perfect market, get strategic. Align yourself with experienced professionals, understand your financing options, and take advantage of the growing inventory in prime neighborhoods.

Need guidance? As one of the top real estate agents in Beverly Hills, I’m here to help you make sense of the market, connect you with top lenders, and help you secure the right home—at the right time.

Call Christophe Choo at (310) 777-6342 to tour your future home "HERE" or click "HERE" to estimate your home value