Mortgage Rates at 7.4%: What California Buyers Should Do Now

After seven consecutive weeks of rate increases, the 30-year fixed mortgage rate is holding at 7.4% — but falling bond yields suggest some relief may be on the horizon. Here's what this means for California buyers and investors.

After seven straight weeks of climbing, the 30-year fixed mortgage rate has settled at 7.40% — near a three-year high. That's putting real pressure on affordability, and we're seeing the effects play out across the market: home sellers are cutting asking prices at a record pace, new home sales just hit their weakest point since 2020, and first-time buyers are feeling the squeeze hardest.

Here in California, where home prices are already elevated, every fraction of a percentage point matters. At 7.4%, a $700,000 loan carries a monthly principal and interest payment of roughly $4,830. That's a number that's pricing many buyers out — which is exactly why timing and loan strategy matter more than ever.

The silver lining? Falling bond yields are signaling that rates could ease in the near term. That means buyers who are pre-approved and ready to move could be well-positioned when rates dip — and with sellers cutting prices, negotiating power is shifting toward buyers.

Now is a great time to review your options, whether you're buying, waiting, or considering an adjustable-rate strategy to manage today's rates.

Want to know what you'd qualify for at today's rates? Contact our team for a free mortgage review and let's build a strategy that works for your timeline.