Company: LRHC
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001213900-25-078012
Chunk: 138

Company: La Rosa Holdings Corp.
Filing Date: 2025-08-18
Form: 10-Q
Item: Item 2
Chunk 138
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. While this pattern is fairly predictable, there can be no assurance that it will
continue. Moreover, with the impact of climate change, we expect more business disruptions in the coming years, many of which could be
unpredictable and extreme.

Our revenues and operating margins will fluctuate
in successive quarters due to a wide variety of factors, including seasonality, weather, health exigencies, holidays, national or international
emergencies, the school year calendar’s impact on timing of family relocations, and changes in mortgage interest rates. This fluctuation
may make it difficult to compare or analyze our financial performance effectively across successive quarters. 

Inflation and Market Interest Rates

The U.S. Federal Reserve continues to take action
intended to address inflation. The Federal Reserve Board maintained the federal funds rate at 533 basis points from August of 2023 through
mid-September 2024, when it was reduced to 483 basis points. In June 2025, the federal funds rate was 433 basis points. 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 was 6.77% by the end of June 2025. Consequently,
housing demand remained soft, prices are rising, consumer sentiment has weakened, and home sales are declining. In June 2025, existing-home
sales fell 2.7% month-over-month to a seasonally adjusted rate of 3.93 million. Year-over-year, sales remained constant. According to
National Association of Realtors Chief Economist Lawrence Yun, “Multiple years of undersupply are driving the record high
home price. Home construction continues to lag population growth. This is holding back first-time home buyers from entering the market.
More supply is needed to increase the share of first-time homebuyers in the coming years even though some markets appear to have a temporary
oversupply at the moment.”

35

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