Company: LRHC
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112656
Chunk: 219

Company: La Rosa Holdings Corp.
Filing Date: 2025-11-19
Form: 10-Q
Item: Item 8
Chunk 219
---
 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 September 2025, the federal
funds rate was 422 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 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