Fed's Kashkari Now Expects a Rate Hike — What It Means for CA Buyers

A top Federal Reserve official has shifted from expecting a rate cut to anticipating a rate hike, signaling that mortgage rates could climb higher in 2026. Here's what California buyers and refinancers need to know.

If you've been waiting for interest rates to drop before buying a home or refinancing, this is a signal worth paying close attention to.

The president of the Minneapolis Federal Reserve has reversed course, now expecting an interest rate *hike* this year rather than the cut many had hoped for. The reason? Inflation pressures are proving stickier and more broad-based than expected — it's no longer just energy prices driving costs higher.

For California buyers, this has real consequences. Mortgage rates are heavily influenced by Fed policy expectations. If the market starts pricing in a rate hike rather than a cut, we could see 30-year fixed rates push higher over the coming months.

My take: If you're on the fence about buying or refinancing, the window you've been waiting for may not arrive this year. Locking in a rate sooner rather than later could save you meaningful money over the life of your loan.

Don't try to time the Fed — focus on what you can control. Contact us today to explore your rate options and get pre-approved before conditions shift further.