On July 1, 2026, a state law changed what the land under certain California homes is legally allowed to become. No local hearing preceded it. No owner received a letter.
Something just happened in the mortgage market that hasn’t happened in nearly two decades, and it confirms what a lot of California homeowners with low-rate mortgages already figured out on their own.
What the Fed did: The Fed held its policy rate steady at 3.50%–3.75% in its January 28, 2026 decision.
The big takeaway for California sellers: The Fed held its policy rate steady at 3.50%–3.75%, which usually keeps mortgage pricing stable but not dramatically cheaper in the short term.
What the Fed did: The Fed held the federal funds rate steady at 3.50%–3.75% in its January 28, 2026 decision.
What the Fed did: The Federal Reserve held the federal funds rate steady at 3.50%–3.75% in its January 28, 2026 decision.
What happened: The Federal Reserve held the federal funds rate steady at 3.50% to 3.75% in its January 28, 2026 decision.
Figures reflect Q3 2025 and are kept as a point-in-time snapshot. For current conditions, see our newer California market updates.