After two months of mortgage rates climbing to levels we hadn't seen since late 2023, the first real relief showed up last week. Long-term bond yields fell, rates followed, and for the first time this fall, buyers on the Westside are looking at numbers that are moving in their favor. Here's what moved, what it means for a purchase on the Westside, and what it means if you're thinking about selling.
This Week's Mortgage Rates
According to this week's jumbo purchase-rate sheet from a private bank lender we work with, dated November 2, 2026, here is where rates stand for a California owner-occupied jumbo purchase:
| Loan type | How it works | Rate | APR |
|---|---|---|---|
| 30-Year Fixed | Same rate for all 30 years | 7.45% | 7.47% |
| 10/6 ARM | Fixed for 10 years, then adjusts every 6 months | 6.24% | 6.56% |
| 7/6 ARM LOWEST RATE | Fixed for 7 years, then adjusts every 6 months | 5.94% | 6.44% |
| 7/6 ARM, Interest-Only | Interest-only payments for 7 years, then adjusts every 6 months | 6.49% | 6.65% |
All rates quoted with 0 points. Source: a private bank lender's jumbo purchase-rate sheet dated November 2, 2026. Rates vary by borrower, loan amount and credit profile.
All four are quoted with zero points. The lender also announced a 0.25% purchase-rate discount this month, which is part of why the 7/6 ARM number stands out. Keep in mind these are one lender's quotes for one borrower profile, and your own rate will depend on your credit, down payment, loan size and relationship with the bank, so get a personal quote before you plan around any of these numbers.
For the national picture, Freddie Mac's weekly survey put the average 30-year fixed at 7.24% as of October 29, down from 7.32% the week before and its lowest level this month. Two weeks earlier it sat at 7.40%, the highest since November 2023. Freddie Mac tracks conforming loans, not jumbo, so it's a direction-of-travel signal for Westside buyers rather than the rate you'll be quoted.
What Moved Rates This Week
The 10-year Treasury came down. Mortgage rates follow the 10-year Treasury yield far more closely than they follow the Fed. The 10-year closed at 4.94% on October 30, down from a closing high of 5.31% on October 5, a drop of 37 basis points (0.37 percentage points) in less than a month. That bond rally is the main reason rates are easing.
The Fed held steady, but not everyone wanted to. The Federal Reserve kept its benchmark rate at 3.75% to 4.00% on October 28, in a 10 to 2 vote. Both dissenters wanted a rate increase, which tells you the Fed is still more worried about inflation than about the economy slowing. The next decision is December 9. Remember that the Fed doesn't set mortgage rates directly, but its tone shapes what the bond market expects.
The economy is still growing fast. GDP grew at a 3.4% annual rate in the third quarter, up from 2.2% in the second quarter. Strong growth is good news for the job market and for buyer confidence, but on its own it tends to keep rates from falling too far.
Inflation is still running hot. The Fed's preferred inflation gauge, core PCE, rose 3.1% over the past year in September, up from 3.0% in August and well above the Fed's 2% target. Higher energy costs tied to the conflict in the Middle East are a big part of that story, and a sustained drop in oil prices would be one of the clearest paths to lower mortgage rates from here.
Jobs are the number to watch this Friday. Unemployment was 4.2% in September, and employers added only 29,000 jobs (BLS). The October jobs report comes out Friday, November 6. A weak report could push yields and mortgage rates lower, and a strong one could push them back up.
What It Means for Buyers
The biggest takeaway is that the monthly cost of a Westside purchase is lower than it was a month ago, and the gap between loan types is wide right now. To put real numbers on it, here is the estimated principal and interest payment with 20% down, using the rates on this week's sheet:
| Purchase price | Loan amount | 30-yr fixed 7.45% |
10/6 ARM 6.24% |
7/6 ARM 5.94% |
|---|---|---|---|---|
| $2,000,000 | $1,600,000 | $11,133/mo | $9,841/mo | $9,531/mo |
| $3,000,000 | $2,400,000 | $16,699/mo | $14,762/mo | $14,297/mo |
| $5,000,000 | $4,000,000 | $27,832/mo | $24,603/mo | $23,828/mo |
Principal and interest only, 30-year amortization, 20% down. Excludes property taxes, insurance and HOA dues. ARM payments shown for the initial fixed period only and can change after that period ends.
On a $3 million home, that's a difference of about $2,400 a month between the 30-year fixed and the 7/6 ARM during the fixed period. That isn't a recommendation of one loan over another, because an ARM carries the risk of a higher payment later and the right choice depends on how long you plan to own and how you think about that risk. That conversation belongs with your lender. What I'd take from it as a buyer is that your budget has more room in it this week than it did in mid-October, and it's worth getting re-quoted if your pre-approval is more than a few weeks old.
Even the national move is meaningful at Westside price points. The drop in Freddie Mac's 30-year average from 7.40% to 7.24% works out to roughly $260 a month on a $2.4 million loan.
On negotiating, the fall has given buyers some leverage. With rates above 7% for most of September and October, sellers who have been sitting on the market are more open to conversations about price and about seller credits, which can be used toward closing costs or to buy down your rate. If rates keep easing, more buyers will come back, so the window where you have the market mostly to yourself may not last through the spring.
What It Means for Sellers
Lower rates bring buyers back, and that's the headline for sellers. Many buyers who paused when rates crossed 7% have been waiting for exactly this kind of signal, and I'd expect showing activity and pre-approval updates to pick up if rates hold or keep easing after Friday's jobs report.
Rates are still well above where they were earlier this year, and inflation hasn't cooled, so this is a buyer pool that's paying close attention to monthly cost. Pricing still has to be right from day one. If your home has been on the market through the fall, this is a good moment to look at whether a price adjustment or a seller credit toward a rate buydown would bring a buyer to the table, because a credit can lower a buyer's monthly payment more than an equal cut to the price.
If you're planning to list in the first quarter, the next few weeks of rate movement will shape who shows up. Getting your pricing strategy and prep done now puts you in position to launch early in the year rather than react to it.
Frequently Asked Questions
Thinking About a Move?
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 for a current quote. If you're a homeowner wondering what returning buyers could mean for your price, I can give you a read on that too. Call or text 310-853-2643 or email info@paulsalazargroup.com.
Paul Salazar is a real estate agent with Compass, not a mortgage lender. Rates and payment examples in this post are for informational purposes only, reflect a single lender's published rate sheet and public data as of the dates noted, and will vary by borrower, loan amount and credit profile. Nothing here is a loan offer or financial advice. Please consult a licensed mortgage professional before making any financing decision. Paul Salazar, Paul Salazar Group at Compass, DRE #01763227.
