As of October 23, 2026, jumbo mortgage rates on a $1M loan were 7.48% for a 30-year fixed, 6.23% for a 7/6 ARM and 6.53% for a 10/6 ARM, according to a private bank lender’s rate sheet. Rates fell 0.07% from the week before, the first drop in more than two months, after a tech selloff pushed the 10-year Treasury yield down 0.19% in one day. For Westside Los Angeles buyers, that means slightly lower payments and more room to negotiate. For sellers, it means pricing to today’s monthly payments matters more than ever.
What Are Jumbo Mortgage Rates in Los Angeles This Week?
These figures come from a jumbo purchase rate sheet dated October 23, 2026, from a private bank lender we work with, based on a $1,000,000 loan. Every product came down 0.07% from the October 16 sheet.
Payments are principal and interest only (interest-only for the 7/6 IO) and exclude taxes and insurance. After the fixed period, ARM payments adjust every 6 months. Rates vary by borrower, so get a personal quote from your lender.
Why Did Mortgage Rates Drop This Week?
Mortgage rates dropped because investors moved money out of tech stocks and into U.S. Treasuries. Thursday’s sharp technology selloff pushed the 10-year Treasury yield down about 0.19% in one day to 4.95%, its largest daily decline since March 2023, before it finished the week near 4.99%. The 10-year had hit 5.36% on October 7, its highest level since 2002, so it has now come down about 0.40% from that peak.
Mortgage rates follow the 10-year Treasury more closely than they follow the Federal Reserve. When investors buy Treasuries, bond prices rise and yields fall, which lets lenders price mortgages a little lower.
Are Buyers Leaving the Southern California Housing Market?
No. Buyers are waiting on rates, not walking away. Pending home sales fell 7.3% nationally in September and were 11.3% below last year, and the West saw the largest monthly decline at 9.2%. Housing starts fell 5.2%, and single-family permits fell 4.0% to their lowest level since March 2023.
NAR’s chief economist said buyers and sellers may simply be holding back until rates move in their favor. Affordability is deciding when people act, and slower new construction means supply in Los Angeles is likely to stay tight when they do.
What Do Lower Mortgage Rates Mean for Westside LA Buyers?
The weekly change is modest, about $46 to $58 less per month for every $1M borrowed. The larger story is the gap between loan types. On a $2.5M purchase in Mar Vista, Venice or Santa Monica with 20% down, a $2M loan at this week’s 30-year fixed rate runs about $13,956 a month, while the 7/6 ARM runs about $12,288. That’s a difference of roughly $1,668 a month, scaled from the sheet’s $1M example, and pricing on a larger loan will vary.
Whether an ARM fits depends on how long you plan to own the home and keep the loan, which is a conversation to have with your lender. What I can tell you is that with pending sales down this much, buyers on the Westside have more room to negotiate on price, terms and seller credits than they’ve had in a while. A seller credit toward a rate buydown is one of the most useful tools in this market.
What Do Mortgage Rates Mean for Westside LA Sellers?
Buyers in Brentwood, Santa Monica, Pacific Palisades and the rest of the Westside are shopping by monthly payment right now, so pricing needs to reflect what a qualified buyer can carry at today’s rates, not what the home might have brought a year ago. Sellers who are open to offering a credit toward a buyer’s rate can widen their buyer pool without cutting the list price. If rates keep easing, the homes already on the market will be the first ones returning buyers see.
Will the Fed Raise Rates in October 2026?
Most likely not. The Fed wraps up its meeting Wednesday, October 28, and is widely expected to hold its benchmark rate at 3.75%–4.00%. Since a pause is expected, the bigger question is whether Chair Warsh’s tone leaves the door open to a hike in December. New home sales come out Tuesday, and on Thursday we get third-quarter GDP and September PCE inflation, the Fed’s preferred inflation gauge. That inflation report could decide whether last week’s improvement in mortgage rates has room to continue.
My Take on This Week’s Mortgage Market
The encouraging part of last week wasn’t just that rates came down. It was how quickly the bond market responded when investors moved back into Treasuries. Housing activity is clearly being held back by affordability, which means even small improvements in rates could bring Westside buyers back. This week’s Fed meeting and inflation report will tell us whether last week was a brief reprieve or the start of a better rate environment. In the meantime, jumbo ARM pricing remains well below the 30-year fixed, which is worth asking your lender about if you’re a qualified buyer who wants a lower payment and plans to hold the loan for a defined period.
Let’s Connect!
If this week’s dip has you rethinking your budget, I’m happy to walk through what it covers on the Westside right now and connect you with a lender I trust. If you’re thinking about selling, I can share what buyers are asking for and how to price for it. Call or text 310-853-2643 or email info@paulsalazargroup.com.
Frequently Asked Questions
What are jumbo mortgage rates in Los Angeles right now?
As of October 23, 2026, one private bank lender’s jumbo rate sheet showed 7.48% for a 30-year fixed, 6.23% for a 7/6 ARM and 6.53% for a 10/6 ARM on a $1M loan. Rates vary by borrower.
Why did mortgage rates go down this week?
A tech stock selloff sent investors into U.S. Treasuries, and the 10-year yield fell about 0.19% in one day, its biggest drop since March 2023. Mortgage rates tend to follow that yield.
What is the difference between a 7/6 ARM and a 30-year fixed mortgage?
A 7/6 ARM has a fixed rate for the first 7 years, then adjusts every 6 months. A 30-year fixed keeps the same rate for the full term. This week, the 7/6 ARM was priced 1.25% below the 30-year fixed on one lender’s jumbo rate sheet.
Will the Fed raise interest rates in October 2026?
Markets expect the Fed to hold at 3.75%–4.00% at its October 28 meeting, with more attention on whether a hike comes in December.
Why are pending home sales falling in California?
The West saw the largest monthly drop in September at 9.2%, as higher mortgage rates pushed monthly payments beyond what many buyers were ready to take on.
Is now a good time to buy a home on the Westside of Los Angeles?
With fewer buyers competing, there’s more room to negotiate on price and seller credits. If rates keep easing, that competition could return.
How much does a small rate drop change my monthly payment?
On this week’s rate sheet, a 0.07% drop saved about $46 to $58 a month per $1M borrowed, depending on the loan type.
Paul Salazar is a licensed real estate agent with Compass, not a mortgage lender. Rates shown are for informational purposes only, reflect a single lender’s rate sheet dated October 23, 2026, and will vary by borrower. Consult a licensed mortgage professional for a personal quote. DRE #01763227.
