Welcome to my October newsletter, with a look at yesterday’s September jobs report, what last month’s Fed rate hike means for borrowers, and where the Los Angeles housing market stands heading into fall.
Mortgage Rates October 2026
Mortgage rates moved higher in September. The 30-year fixed-rate mortgage averaged 7% in the final week of the month, according to Freddie Mac, and the 10-year Treasury yield has pushed toward 5.30%, a level not seen since 2007. Both figures reflect a bond market recalibrating to the possibility of rates staying elevated longer than expected. See our featured rates below for the lowest local pricing.
Yesterday, the Bureau of Labor Statistics released the September Jobs Report. The economy added 29,000 jobs, the unemployment rate edged up to 4.2%, and average hourly earnings rose 3% year-over-year, the softest wage reading in several months. That combination, modest hiring and cooling wages, is the kind of data that gives the Fed room to pause.
On Sept. 16, the Fed raised the federal funds rate by 25 basis points to a target range of 3.75% to 4%, the first rate hike since 2023. The decision was driven largely by persistent energy inflation. Oil prices surged above $100 per barrel in September on renewed tensions in the Middle East, keeping inflation expectations elevated despite broad progress on other components of CPI. The next Fed decision is Oct. 28. Yesterday’s jobs data reduces the urgency for another hike, but the Fed will weigh that against inflation, and oil prices remain the variable with the most influence on what comes next.
Featured rates this week:
• 6.125% on 7/6 YR ARMs, 80% LTV financing up to $2M and 6.25% for 75% LTV financing up to $3M with full income documentation
• 6.375% on 10/6 YR ARMs, 80% LTV up to $2M and 6.5% for 75% LTV financing up to $3M with full documentation
• 90% LTV financing up to $2M is also available, contact me for more details
• Bank-statement loans for self-employed borrowers remain in the mid-to-high 6% to low 7% range depending on credit score and loan-to-value
• Lower rates available through a private banking relationship
Los Angeles Housing: A Market Waiting on Certainty
The Los Angeles market is more deliberate than it was a year ago, and the data reflects that. According to Realtor.com, the September median list price in Los Angeles County was $1,125,000, down 4.4% year-over-year. The median sold price held at $1,029,250, up 0.4% year-over-year, which tells you correctly priced homes are still trading. Active listings reached 11,948, nearly flat year-over-year, and the median days on market stretched to 60 days, up from a tighter market 12 months ago.
Buyers are cautious right now, and that caution is understandable given where rates are. But the rate environment is temporary, and the price you pay is permanent. Los Angeles has consistently rewarded long-term ownership, and buyers who wait for a market correction that never comes often end up paying more later. The properties that are sitting are the ones still priced for last year. Well-priced homes in desirable areas, particularly on the Westside, are still moving.
For qualified buyers, this market offers real estate at prices off recent peaks and the ability to refinance when conditions improve. That combination does not last indefinitely.
Wondering what to ask before you choose a lender? Here are the questions to ask a mortgage lender in Los Angeles.
Recently Closed Loans
Home Purchase | San Fernando Valley | $3.4M
80% LTV financing
10/6 ARM
6.125% interest rate | 6.245% APR
Cohen Financial Group secured a HELOC on the borrower’s existing home at the same time as the purchase financing, providing the funds needed for the down payment.
Home Purchase | Palos Verdes Estates | $2.8M
80% LTV financing
5/6 ARM
4.625% interest rate | 4.745% APR
Speed and lender access made the difference. We closed in 21 days and secured highly competitive pricing through a strong local lending relationship.
Home Purchase | Santa Monica | $3.8M
73% LTV financing
10/6 ARM
6.125% interest rate | 6.245% APR
The down payment came from a HELOC that Cohen Financial Group arranged concurrently with the purchase loan, creating a coordinated financing solution that kept the transaction moving.
Refinance | Cheviot Hills
5/1 ARM
4.99% interest rate | 5.11% APR
The homeowner’s existing ARM was about to reset, increasing the monthly payment from approximately $9,900 to $19,000. We refinanced the property and reduced the new payment to about $13,500, helping the client avoid a dramatic payment increase.
Home Purchase | Santa Clarita | $1.375M
95% LTV financing
5/6 ARM
4.625% interest rate | 4.745% APR
With the borrower’s parents as co-signers, we secured financing with only 5% down and some of the lowest rates available in the market.
Key Dates This Month
Oct. 13: Existing Home Sales
Oct. 14: Consumer Price Index (CPI)
Oct. 20: Building Permits, Housing Starts
Oct. 27: New Home Sales
Oct. 28: Fed Interest Rate Decision
How I Can Help
Rates are higher, but qualified buyers with the right financing structure are still transacting. If you would like updated rate quotes, a scenario analysis on a specific property, or a conversation about how the current environment affects your plans, please reach out any time.
Sincerely,