Rates Staying High in 2026: What California Buyers Should Do Now

Mortgage rates are expected to stay above 6.6% through 2026 with no Fed relief in sight — but that doesn't mean sitting on the sidelines is your best move.

If you've been waiting for mortgage rates to drop before buying or refinancing, here's the reality check: most housing economists now expect the 30-year fixed rate to stay above 6.6% through the rest of 2026. The Federal Reserve isn't expected to offer meaningful relief anytime soon, especially with inflation data still running hot.

So what does this mean for California buyers and homeowners?

For buyers, the market staying subdued actually works in your favor in some ways — less competition, more negotiating room, and sellers who are more motivated than they were two years ago. The buyers who win in this environment are the ones who get pre-approved early, lock in strategically, and focus on long-term equity rather than timing the market perfectly.

For homeowners watching the refi opportunity: surveys show nearly 10 million borrowers are sitting on the sidelines waiting to refinance. When rates do eventually dip, that wave will hit fast. Getting your financial profile and paperwork in order now means you'll be first in line — not scrambling when everyone else jumps at the same time.

High rates are the new normal for now, but there are still smart moves to make.

Reach out to our team today to explore your options — whether you're buying, waiting, or ready to refi the moment rates move.