Company: LRHC
Filing Date: 2025-05-29
Form Type: 10-Q
Source: 0001213900-25-048370
Chunk: 180

Company: La Rosa Holdings Corp.
Filing Date: 2025-05-29
Form: 10-Q
Item: Item 2
Chunk 180
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 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 April 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 6.65% by the end of March 2025. Consequently,
housing demand remained soft, prices are rising, consumer sentiment has weakened, and home sales are declining. In March 2025, existing-home
sales fell 5.9% month-over-month to a seasonally adjusted rate of 4.02 million. Year-over-year, sales drew back 2.4%. According to National
Association of Realtors (“NAR”)  Chief Economist Lawrence Yun, “Home buying and selling remained sluggish in March
due to the affordability challenges associated with high mortgage rates. Residential housing mobility, currently at historic lows, signals
the troublesome possibility of less economic mobility for society.”

28

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