Company: LRHC
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032211
Chunk: 297

Company: La Rosa Holdings Corp.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1A
Chunk 297
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 in the U.S., significantly
affects the availability of financing at favorable rates and on favorable terms, which in turn affects the domestic real estate market.
Policies of the Federal Reserve Board can affect interest rates available to potential homebuyers. Further, we will be adversely affected
by any rising interest rate environment. Changes in the Federal Reserve Board’s policies, the interest rate environment and mortgage
market are beyond our control, are difficult to predict and could restrict the availability of financing on reasonable terms for homebuyers,
which could have a material adverse effect on our business, results of operations and financial condition. We review all aspects of the
current state of legislation, regulations and policies affecting the domestic real estate market and cannot predict whether or not such
legislation, regulation and policies may result in increased down payment requirements, increased mortgage costs, and result in increased
costs and potential litigation for housing market participants, any of which could have a material adverse effect on our financial condition
and results of operations.

The U.S. Bureau of Labor Statistics (“BLS”) reported that
the Consumer Price Index for All Urban Consumers (CPI-U), a broad-based measure of goods and services costs, rose 0.4 percent in
February 2024 seasonally adjusted, and rose 2.8 percent over the last 12 months, not seasonally adjusted. This increase was well above
the Federal Reserve System’s (the “Fed”) targeted inflation rate of 2.0%, The 2024 federal funds interest rate
decreased to 4.33 primarily due to moderating inflation and a weakening labor market. The Federal Open Market Committee
decided to lower the key overnight borrowing rate by 50 basis points, marking the first rate cut since the early days of the COVID-19
pandemic. Additionally, inflation was coming under control after a period of rising prices, which contributed to the decision. The
Fed aimed to provide financial relief to borrowers and cool down an overheated economy. Fed funds rates impact interest rates on government
bonds that have a correlated effect on mortgage interest rates, which, as of March 20, 2025, the average rate for a 30-year fixed rate
mortgage was 6.67 according to Freddie Mac, the federally chartered home mortgage loan securitizer. Mortgage interest rates have continued
to have a depressing effect on the sale of existing homes, that include single-family homes, townhomes