The number everyone’s quoting this week: 7.40%.
That’s where Freddie Mac’s weekly survey put the average 30-year fixed mortgage rate for the week ending October 8, 2026 — up from 7.28% the week before, the highest reading since November 2023, and the seventh straight weekly increase. (The 15-year averaged 6.73%.)
On its face, that’s bad news for buyers. Higher rates mean higher monthly payments, and there’s no way to sugarcoat the math.
But here’s what the headline number doesn’t tell you: high rates are quietly handing leverage back to buyers — especially here in Los Angeles.
Sellers are negotiating again
When rates climb this fast, demand cools, homes sit longer, and sellers start doing things they wouldn’t do in a hot market: cutting prices, offering closing-cost credits, even buying down the buyer’s rate. Every one of those concessions is money back in your pocket — and none of them show up in the rate headline.
You can refinance the rate. You can’t renegotiate the price.
This is the part buyers forget. If you buy at today’s price with today’s rate and rates fall next year, you refinance and your payment drops. But if you wait for lower rates while prices climb — which is what usually happens when cheaper money brings demand flooding back — you’ve lost far more than a rate dip would have saved you. The price you pay is permanent. The rate isn’t.
Less competition right now
Fewer buyers are shopping at 7.40% than at 6%. That means fewer bidding wars, more time to decide, and a better shot at the home you actually want instead of the one you settled for.
What to do about it
- Get pre-approved now. A pre-approval tells you exactly what you qualify for at today’s rates — and it makes your offer dramatically stronger when sellers are choosing between buyers.
- Ask for concessions. In this market, asking the seller to cover closing costs or buy down your rate isn’t aggressive — it’s normal. Your agent should be building these into every offer.
- Run the real math. Don’t let the rate scare you off before you’ve seen what the monthly payment actually looks like with today’s prices and a seller concession or two. It’s often less painful than the headline suggests.
The buyers who win in high-rate markets aren’t the ones who wait for perfect conditions. They’re the ones who buy the right home at the right price while everyone else sits on the sidelines — then refinance when rates come back down.
If you’re thinking about buying in Sunland-Tujunga, the San Fernando Valley, or anywhere in Los Angeles, start with the numbers. Download my free Home Buyer’s Guide — it walks through financing, offers, inspections, and closing, step by step.
Download the Free Home Buyer’s Guide →
Armen Mardirousi is a licensed California real estate broker (CalDRE 02041786) and founder of Raven’s Rock Real Estate Services, serving Sunland-Tujunga and the greater Los Angeles area.