Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 87

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 1
Chunk 87
---
 The fluctuations impact interest rates, which significantly contribute to mortgage rate adjustments.
During the second half of 2022, the benchmark 30 year fixed conforming mortgage rate rose above 6% for the first time since
2008, according to Freddie Mac data, and reached a peak of about 8% during the second half of 2023. That interest rate sat in between
6.62% and 6.85% during 2024 and fell to 6.30% by the end of September 2025. In September 2025, existing-home sales rose 1.5% month-over-month
to a seasonally adjusted rate of 4.06 million. Year-over-year, sales rose 4.1%. Total homes for sale were 1.6 million, a rise of 14% over
last year, with a median sales price of $415,200, a 2.1% rise over last year. According to NAR Chief Economist Lawrence Yun, “As
anticipated, falling mortgage rates are lifting home sales. Improving housing affordability is also contributing to the increase in sales.”

47

Recent
Legal Challenges to Sales Agents’ Commission Structure

Recent
developments in the real estate industry have seen increased scrutiny and legal challenges related to the structure of real estate agent
commissions. Legal actions and regulatory inquiries have been initiated to examine the fairness, transparency, and potential anticompetitive
practices associated with the traditional commission model. Courts and regulatory bodies may be increasingly focused on ensuring transparency
in commission structures, potentially leading to reforms that impact the earnings and business models of real estate professionals. Changes
in legislation or legal precedents could impact the standard practices of commission-sharing between listing agents and buyer’s agents
and may adversely affect our business model and revenues. On October 31, 2023, a federal jury in Missouri found that NAR and certain
companies conspired to artificially inflate brokerage commissions, which violates federal antitrust law. The judgment was appealed on
October 31, 2023, while these and other plaintiffs have filed similar lawsuits against a number of other large real estate brokerage
companies. We have not, as of the date hereof, been named as a defendant in any antitrust litigation. On or about March 15, 2024, NAR
agreed to settle these lawsuits, by agreeing to pay $418 million over approximately four years, and changing certain of its rules surrounding
agent commissions. This settlement