The government paused rates, but yours went up anyway. Here's why.

The Federal Reserve announced yesterday they're holding their benchmark rate steady. Sounds like good news, right? But today's average rate is 6.625% (6.674% APR), a tick higher than it was going into the announcement. That disconnect happens because mortgage rates follow the bonds investors buy, not the Fed's rate directly. And those investors care more about where inflation is headed than what the Fed did yesterday.

What that means for you: on a $500,000 loan, 6.625% (6.674% APR) runs about $3,212 a month in principal and interest. That's $38 more than it would've been at last week's national average of 6.58%. Small move, real money over 30 years. If monthly payment is tight, a 40-year interest-only loan at 6.875% (7.014% APR) drops the same loan to $2,865 a month for the first decade, all interest. Not for everyone, but it's one tool when cashflow matters more than equity up front.

The Fed's next move is September 16. Between now and then, rates will move with oil prices, inflation prints, and geopolitical headlines, not Fed speeches. If you're ready to buy, I can walk you through what you qualify for today and whether locking now or floating makes sense for your timeline. I answer my phone. Call me at (949) 350-8005.

Rates shown are today's average California rates as of 7/31/2026, for general information only and not an offer or commitment to lend. Your actual rate and APR depend on your credit, loan amount, down payment, and property, and rates and terms can change at any time. Brett Hickman, NMLS #2010859. Home First Financial, NMLS #2465048. Equal Housing Lender.