Mortgage Rates Cross 7% — What California Buyers Need to Know

30-year mortgage rates have topped 7% for the first time since early 2025, marking five straight weeks of increases. Here's what that means for California buyers and investors right now.

Mortgage rates have climbed above 7% for the first time in over a year, and this isn't a blip — it's the fifth consecutive week of increases on Freddie Mac's 30-year benchmark. For California buyers already navigating some of the country's highest home prices, this shift matters.

Every rate increase chips away at purchasing power. At 7%+, a $700,000 loan now carries a principal and interest payment well above $4,600 per month. That's a meaningful jump compared to even six months ago, and it's tightening the window for buyers who were already stretching their budgets.

So what should you do? First, don't panic — rates move, and locking at the right moment can save you thousands. Second, explore all your options. Adjustable-rate mortgages, buydowns, and lender credits may help offset today's elevated rates depending on your timeline. Third, if you're an investor or existing homeowner, a second lien or home equity product could be a smarter move than waiting for a refinance opportunity that hasn't arrived yet.

The market is shifting fast. The best thing you can do right now is get a clear picture of your options before rates move higher.

Ready to explore your loan options? Contact our team today for a free rate comparison.