By Ashkan Shirinkar | Los Angeles Real Estate Agent | September 2026
If you’re one of the many Los Angeles home buyers thinking about purchasing a home right now, there’s probably one number you can’t stop looking at:
The mortgage rate.
And I understand why.
As of September 17, 2026, the average 30-year fixed mortgage rate is 6.95%, according to Freddie Mac. Depending on the borrower, loan amount, credit profile, down payment and loan program, the actual rate someone is quoted can be higher or lower.
At first glance, a mortgage rate around 7% may make you think:
“Why would I buy right now? Maybe I should just wait.”
But as a real estate agent who works with buyers throughout Los Angeles, the San Fernando Valley and Conejo Valley, I think buyers need to look beyond the interest rate.
Because something else has changed.
Buyers have choices.
And when buyers have more choices and sellers have more competition, the way you negotiate a home purchase can change dramatically.
The Mortgage Rate Isn’t the Only Number That Matters
There’s no question that mortgage rates matter.
A higher interest rate means a higher monthly payment, and every buyer should work with a qualified loan officer to understand exactly what they can comfortably afford.
But the interest rate is only one part of a real estate transaction.
The purchase price matters.
Seller credits matter.
Closing costs matter.
Competition matters.
The condition of the property matters.
And most importantly, how the deal is negotiated matters.
During extremely competitive markets, buyers can have very little leverage. You might find the right house only to discover that five, ten or even twenty other buyers want it too.
That can mean bidding above asking price, shortening contingencies or simply having very little room to negotiate.
Today’s market can look very different.
Los Angeles Buyers Have More Choices
This is one of the biggest changes I’ve noticed.
Think about a buyer with a budget of approximately $1.5 million.
Not long ago, depending on the neighborhood and property type, that buyer might have had only a handful of homes worth seriously considering at any particular time.
Today, in many areas, buyers can compare more properties before making a decision.
That can include homes across areas such as Woodland Hills, West Hills, Sherman Oaks, Culver City, Marina del Rey and other parts of Los Angeles.
This doesn’t mean every neighborhood or every property has suddenly become a buyer’s market.
Real estate is extremely local.
A beautiful home that is priced correctly in a desirable neighborhood can absolutely still attract multiple offers.
But when there are more homes competing for buyers’ attention, buyers don’t necessarily have to approach every property with the same urgency they did during the most competitive markets.
They can compare.
They can analyze.
And in the right situation, they can negotiate.
What Does More Buyer Negotiating Power Actually Mean?
Most people immediately think:
Offer less money.
That’s certainly one possibility.
But good real estate negotiation goes much further than simply submitting a low offer.
Depending on the property, seller motivation, market conditions and financing, a buyer may potentially negotiate:
A lower purchase price
Seller credits toward allowable closing costs
Contributions toward an eligible temporary mortgage-rate buydown
Contributions toward discount points for a permanent rate reduction
Repairs or credits in lieu of repairs
Closing timelines
Contingency periods
Other terms that may improve the overall transaction
Not every seller will agree to these terms, and not every financing program allows the same concessions.
That’s why buyers should look at the entire transaction, not just the list price.
A Home Listed at $1.5 Million Isn’t Necessarily Worth $1.5 Million
This is something I discuss with my buyers constantly.
The asking price is a marketing decision.
Market value is something different.
If a seller lists a property for $1,500,000 and you negotiate it down to $1,450,000, that doesn’t automatically mean you got a $50,000 deal.
What if the property’s actual market value was closer to $1,425,000?
You could technically buy the house for $50,000 below asking and still potentially be paying too much.
That’s why my approach with buyers isn’t simply:
“How much can we get the seller to come down?”
The first question is:
“What is this property actually worth?”
I look at recent comparable sales, active competition, pending sales when information is available, days on market, price reductions, property condition and what’s happening in that specific neighborhood.
Then we determine where the property should realistically trade.
In a changing market, I also want to think about where the market may be heading—not just where it has been.
There is no way to guarantee what a home will be worth six months from now. But when market conditions are softening, I believe buyers should negotiate with that risk in mind rather than automatically paying based on yesterday’s market.
Sometimes the Opportunity Isn’t Just in the Purchase Price
Here’s something many buyers don’t realize.
In certain transactions, a seller may be willing to provide a credit toward allowable buyer costs rather than—or sometimes in addition to—reducing the purchase price.
Depending on the buyer’s loan program and lender requirements, those funds may potentially help cover eligible closing costs, prepaid expenses, a temporary mortgage-rate buydown or discount points for a permanent rate reduction.
The allowable amount depends on the specific financing.
This is where the buyer’s real estate agent and loan officer should communicate before the offer is written.
I am not a loan officer, and I don’t advise my clients on which mortgage product they should choose.
Instead, I want to ask the lender:
“If I can negotiate a seller credit for my buyer, what are the options for using it most effectively?”
That’s a conversation the buyer should have with their lender.
Then I can focus on my part of the transaction:
Negotiating it.
Option #1: A Temporary 2-1 Mortgage Rate Buydown
One option buyers may want to ask their lender about is a 2-1 temporary rate buydown.
Here’s a simplified example.
Let’s assume the actual note rate on a buyer’s mortgage is 7%.
With an eligible 2-1 temporary buydown, the payment may effectively be calculated using:
Year 1: 5%
Year 2: 6%
Year 3 and beyond: 7%
The actual mortgage note itself remains at 7%. Funds placed into the buydown account subsidize the difference in the payments during the temporary buydown period.
For eligible loans, the seller may potentially contribute toward funding that buydown, subject to the loan program’s rules and contribution limits.
There’s another very important point:
The buyer generally still has to qualify using the actual note rate, not the temporarily reduced payment.
So a temporary buydown shouldn’t be viewed as a way to buy a home that someone otherwise cannot afford.
Instead, it may be a tool that reduces the buyer’s effective payment during the first years of homeownership when properly structured.
Option #2: Using Seller Credits to Buy Discount Points
There’s another strategy buyers often overlook.
Instead of temporarily reducing the payment, buyers may be able to use eligible seller credits toward discount points to obtain a lower permanent mortgage rate.
Discount points are essentially interest paid upfront at closing in exchange for a lower interest rate.
One point equals 1% of the loan amount.
For example, on an $800,000 mortgage:
1 point = $8,000
But here’s an important distinction:
Paying one point does not mean your mortgage rate automatically drops by 1%.
The amount by which points reduce the interest rate depends on the lender, loan product and market pricing at the time.
That’s why I think buyers should ask their lender to actually run the numbers.
For example:
“If we negotiate $10,000, $20,000 or $30,000 in seller credits, what could that do for my interest rate and monthly payment?”
Now we’re looking at the transaction differently.
Instead of only asking the seller:
“Will you reduce the price?”
We’re asking:
“How can we structure this deal to create the most value for the buyer?”
Temporary 2-1 Buydown vs. Permanent Discount Points
These strategies are very different.
With a 2-1 temporary buydown, the buyer receives a larger payment reduction initially, but that benefit gradually disappears.
With discount points, money is paid upfront to obtain a lower interest rate that generally applies for the life of that fixed-rate loan.
Neither option is automatically better.
If a buyer plans to keep the same mortgage for many years, paying points may potentially become more valuable over time.
If the buyer sells or refinances relatively soon, spending a large amount upfront to permanently reduce the rate may not make financial sense.
There’s also a third option:
Use the seller credit toward eligible closing costs and keep more of the buyer’s own cash in their pocket.
That’s why I don’t believe buyers should guess.
Ask the lender to show you the numbers.
If I were representing the buyer, I’d want them to see at least three scenarios:
Scenario 1: No rate buydown.
Scenario 2: Seller credit applied toward an eligible temporary 2-1 buydown.
Scenario 3: Seller credit applied toward eligible discount points for a permanent rate reduction.
Then compare the upfront costs, monthly payments and long-term numbers.
My job is to negotiate the strongest deal I can. The lender’s job is to show my buyer exactly what each financing option costs and how it affects their payment.
Then the buyer can make an informed decision.
“I’ll Just Buy When Rates Come Down”
I hear versions of this frequently.
And maybe rates will come down.
Maybe they won’t.
Nobody knows exactly where mortgage rates will be six months or twelve months from now.
But there’s another side of the equation buyers should consider.
What happens to buyer competition if rates fall significantly?
A lower rate could improve affordability for you.
But it could also improve affordability for thousands of other buyers who have been waiting on the sidelines.
That doesn’t mean prices will automatically rise or bidding wars will automatically return.
It simply means that interest rates should not be evaluated in isolation.
A buyer should consider the combination of:
Interest rate + purchase price + inventory + competition + negotiating leverage + monthly payment.
Those factors together tell you much more than the interest rate alone.
What If Rates Drop After You Buy?
Another common question is:
“What if I buy today and rates are lower next year?”
Depending on their financial situation, loan and future market conditions, a homeowner may be able to explore refinancing with a lender.
But refinancing should never be treated as guaranteed.
Rates may not fall.
Property values can change.
Qualification requirements can change.
And refinancing involves its own costs and financial considerations.
That’s why I don’t believe someone should buy a home today based on the assumption that they will definitely refinance later.
You should be comfortable with the home and the financing you have today.
If refinancing becomes beneficial in the future, then you can evaluate that opportunity with your lender at that time.
Real Negotiation Is About More Than Getting Below Asking Price
I’ve had the opportunity to negotiate significant savings for buyers in different markets.
In one Calabasas transaction, I negotiated a purchase approximately $125,000 below the asking price.
In Oak Park, I negotiated approximately $75,000 below asking for another buyer.
I’ve negotiated other purchases substantially below asking price as well.
But those numbers aren’t the point.
The point is understanding why there is room to negotiate.
Is the property overpriced?
Has it been sitting on the market?
Has the seller already reduced the price?
Does the seller have a timeline?
Are there competing offers?
Are there inspection issues?
How does the property compare with recent sales?
What alternatives does my buyer have?
And perhaps most importantly:
How much leverage do we actually have?
Every transaction is different.
Sometimes the right strategy is an aggressive offer below asking.
Sometimes it’s a smaller price reduction combined with a seller credit.
Sometimes we may want to preserve the purchase price and negotiate a larger allowable credit because, after reviewing the numbers with the lender, that creates more immediate value for the buyer.
And sometimes the property is already priced correctly and pushing too hard could cost the buyer the house.
Negotiation isn’t about automatically offering the lowest number possible.
It’s about understanding the situation and structuring the offer accordingly.
What I’m Seeing in Woodland Hills, West Hills, Calabasas and the Conejo Valley
The Los Angeles real estate market isn’t one single market.
Woodland Hills can behave differently from Calabasas.
Calabasas can behave differently from Oak Park.
Oak Park can behave differently from Westlake Village.
And even within Woodland Hills, two properties a mile apart can receive completely different responses from buyers.
Across the areas where I work—including Woodland Hills, West Hills, Calabasas, Agoura Hills, Oak Park, Westlake Village and Thousand Oaks—I’m paying very close attention to three things for my buyers:
Inventory
How many realistic alternatives does my buyer have?
Seller motivation
How long has the property been available, has the price changed, and what can we learn about the seller’s priorities?
Recent comparable sales
What are buyers actually paying—not what sellers are asking?
That’s where negotiating strategy starts.
Why Los Angeles Home Buyers Have More Choices in Today’s Market
Recent Los Angeles housing data helps put today’s market into perspective.
For the three months ending August 2026, the median Los Angeles home sale price was approximately $1.055 million, down about 1.4% year over year. Homes were taking approximately 52 days to sell.
That doesn’t mean every Los Angeles neighborhood is declining.
And it certainly doesn’t mean every seller is desperate to negotiate.
It shows why broad headlines aren’t enough.
Real estate decisions need to be made property by property and neighborhood by neighborhood.
And in many situations today, buyers have something extremely valuable:
The ability to say, “If this deal doesn’t make sense, there are other homes I can consider.”
That can change a negotiation.
So, Is It a Good Time to Buy a Home in Los Angeles?
I don’t believe there’s one answer that applies to everyone.
For someone stretching their finances just to make the monthly payment work, buying simply because there might be negotiating opportunities doesn’t make sense.
For someone planning to move again soon, the transaction costs of buying and selling need to be considered carefully.
But for a financially prepared buyer who plans to own the property for the longer term, today’s market deserves a closer look.
Not because rates are low.
They’re not.
But because there may be opportunities on the other side of the equation that buyers overlook when they’re focused exclusively on the rate.
Don’t Just Ask, “What’s the Rate?”
Ask:
What is this house actually worth?
How much competition am I facing?
How motivated is the seller?
Can we negotiate the purchase price?
Can we negotiate seller credits?
Does my loan allow a temporary rate buydown?
Could seller credits be used toward discount points for a permanent rate reduction?
Would I be better off using the credit toward closing costs?
What would my monthly payment look like under each scenario?
And am I comfortable with the permanent payment if rates don’t come down?
Those questions give you a much better picture of the transaction.
The Bottom Line
Mortgage rates near 7% aren’t something buyers should ignore.
But they shouldn’t be the only thing buyers look at either.
Sometimes a difficult market creates opportunities somewhere else.
Today, that opportunity may come through more choices, less competition on certain properties, stronger price negotiations, seller credits, temporary rate buydowns, permanent discount points or other deal structures that may not have been realistic when sellers had multiple buyers competing for every home.
Nobody can promise where interest rates or home prices will go next.
What you can do is analyze the opportunity that exists today.
That’s my job when I represent a buyer.
I want to understand the property’s real value, identify where we have leverage, communicate with the buyer’s lender about available financing strategies, and negotiate the transaction in a way that puts my buyer in the strongest possible position.
Because sometimes the biggest opportunity isn’t the interest rate.
It’s the deal you negotiate.
Thinking About Buying a Home in Los Angeles?
If you’re considering buying a home in Woodland Hills, West Hills, Calabasas, Agoura Hills, Oak Park, Westlake Village, Thousand Oaks or surrounding Los Angeles and Conejo Valley communities, don’t just look at the asking price and today’s mortgage rate.
Let’s look at the entire deal.
We’ll analyze the property’s value, comparable sales, competition, seller motivation and potential negotiating opportunities so you can make an informed decision.
Ashkan Shirinkar
Real Estate Agent | Beverly & Company
Serving Los Angeles, San Fernando Valley & Conejo Valley
English & Farsi
This article is for general informational purposes only and is not mortgage, financial, tax or legal advice. Mortgage rates, loan programs, seller-contribution limits, discount-point pricing, buydown eligibility and qualification requirements vary by borrower, lender and loan program. Buyers should consult a qualified mortgage professional regarding their specific financing options.
Frequently Asked Questions About Buying a Home in Los Angeles
Is it a buyer’s market in Woodland Hills in 2026?
Woodland Hills is not one single market, and conditions can vary by price range, property type and neighborhood. However, buyers may have more choices and negotiating opportunities on certain properties than during highly competitive periods. I look at current inventory, recent comparable sales, days on market, price reductions and competition before deciding how aggressively to negotiate.
Can a home buyer ask a seller for closing-cost credits?
Yes. Buyers can negotiate for seller credits toward eligible closing costs, subject to the seller’s agreement and the rules of the buyer’s loan program. The amount allowed can vary based on the financing, loan-to-value ratio, occupancy and other factors, so buyers should confirm the limits with their lender before writing the offer.
Can seller credits be used to buy down a mortgage rate?
Depending on the loan program and lender requirements, eligible seller credits may be used toward a temporary mortgage-rate buydown or discount points for a permanent rate reduction. Buyers should have their lender calculate the available options before deciding how they want the credit structured.
What is the difference between a 2-1 buydown and mortgage discount points?
A 2-1 buydown temporarily reduces the buyer’s effective mortgage payment during the first two years before returning to the full note-rate payment. Discount points are paid upfront to obtain a lower interest rate that generally applies for the life of a fixed-rate loan. The better option depends on the buyer’s loan, plans and financial situation.
Should I wait for mortgage rates to drop before buying a home?
There isn’t one answer for every buyer. Mortgage rates may rise or fall, and future home prices and competition are also uncertain. Instead of trying to predict the market, I recommend looking at the entire transaction today: purchase price, monthly payment, available inventory, competition, seller motivation and potential negotiating opportunities.
