Mortgage Rates Hit a Year-High — What California Buyers Should Do Now

The 30-year mortgage rate has climbed for four straight weeks to a year-high of 6.85%, and a Fed rate hike may still be coming. Here's what this means for California buyers and investors.

Four consecutive weeks of rising mortgage rates have pushed the 30-year fixed rate to its highest point this year at 6.85% — and we may not be at the ceiling yet.

Here's my read on the situation: the Federal Reserve's decision to hold rates in July wasn't a sign of relief — it was a pause before a likely September increase. Markets reacted sharply to the hold, signaling that investors were actually expecting a cut, not a freeze. When those hopes were dashed, bond yields moved, and mortgage rates followed.

On top of that, second-quarter GDP came in below expectations while core inflation remains stubbornly above the Fed's 2% target. That combination makes it very difficult for the Fed to ease anytime soon.

For California buyers, this means a few things: your purchasing power is tighter than it was even a month ago, and waiting for rates to drop could mean waiting longer than you'd like. For investors, higher rates compress margins, so running your numbers carefully right now is non-negotiable.

The silver lining? Some markets are seeing sellers cut prices, which can partially offset higher borrowing costs.

Don't navigate this market alone. Contact our team today to explore your loan options and lock in a strategy that works at today's rates.