The 30-year fixed crossed back over 7%. Freddie Mac's survey dated September 24 put the average at 7.03%, up from 6.95% the week before and the highest reading since January 2025, according to Freddie Mac data published through FRED. In late February the same average was 5.98%.
That kind of move changes the questions homeowners ask. Two come up most: if rates are this high, is a HELOC now the smarter way to get cash out of a house? And are higher rates finally pushing California home prices down? Short answers: for many owners, yes on the first. On the second, not yet, at least not in the data.
| Rate | Latest | Prior Week | Change |
|---|---|---|---|
| 30-year fixed | 7.03% | 6.95% | ▲ +0.08 |
| 15-year fixed | 6.42% | 6.26% | ▲ +0.16 |
| Prime rate (most HELOCs) | 7.00% | 7.00% | — unchanged |
| Fed funds target range (since Sept. 16) | 3.75%–4.00% | 3.75%–4.00% | — unchanged |
| Fed funds rate (effective, August avg.) | 3.63% | 3.63% | — unchanged |
Quick read: The 30-year is up 1.05 points from its 2026 low of 5.98% on February 26. The 15-year jumped more than the 30-year this week and sits at 6.42%. The 10-year Treasury, which long-term mortgage rates tend to follow, closed at 5.17% on September 25, per FRED. Prime has held at 7.00% since the day after the Fed's September 16 hike.
On a $600,000 30-year loan, principal and interest at 7.03% comes to about $4,004 a month. That is roughly $32 more than at last week's 6.95%, and about $414 more than at February's 5.98%, when the same loan ran about $3,590. A $600,000 15-year loan at 6.42% runs about $5,200 a month. (Estimates assume principal and interest only on a $600,000 loan for the full stated term, with no property taxes, insurance, HOA dues, or mortgage insurance. Your rate and payment will differ.)
A cash-out refinance replaces your whole mortgage with a new, larger loan at today's rate. A HELOC or home equity loan sits behind your existing mortgage and only charges current pricing on the money you actually borrow. When market rates were close to what most people already had, the difference was small. With the survey average above 7% and many California owners holding first mortgages locked in at 3% to 4% before 2022, the difference is large.
Here is an illustration. Say you have a $450,000 first mortgage at 3.5%, with principal and interest of about $2,021 a month, and you want $100,000 for a remodel or to pay off higher-rate debt.
| Option | How it works | Estimated monthly payment |
|---|---|---|
| Cash-out refinance | New $550,000 30-year loan at 7.03% | About $3,670 (up about $1,649) |
| Keep first mortgage + HELOC | $2,021 on the existing loan, plus interest-only on $100,000 at an assumed 8.00% (prime 7.00% + a 1.00% margin) | About $2,688 (up about $667) |
In this example the HELOC route costs about $982 a month less during the draw period. (Illustration only. The HELOC margin is an assumption, and your lender's margin could be higher or lower. The HELOC payment is interest-only and will rise when the repayment period starts or if prime goes up. Closing costs, fees, and taxes are not included.)
The tradeoff: Most HELOCs are variable. Prime moved from 6.75% to 7.00% after the September hike, and the Fed's own projections showed most officials expecting at least one more increase this year. If you want a fixed payment, a home equity loan or a fixed-rate option on part of a HELOC balance gives you one. This comparison walks through the choice.
A cash-out refinance can still win in some cases, mainly if your current rate is already near or above today's market, or if you need to take out a lot of cash relative to your balance. Our California HELOC vs cash-out refinance breakdown covers where the line falls, and our guide to tapping equity without refinancing lays out the second-lien options.
Free rate check in 2 minutes. No credit pull, no obligation. A licensed advisor compares HELOC, home equity loan, and refinance options on your numbers.
Check My Options →Not in the numbers so far. Prices are flat, which is not the same as falling.
The pressure is showing up in activity more than in prices. C.A.R.'s unsold inventory index rose to 3.7 months in August, its highest in six months, and statewide sales stayed below 300,000 units annualized for the 47th straight month. Much of that data predates rates crossing 7%. C.A.R. has said that home prices "may face additional downward pressure through the end of the year" as higher rates weigh on demand.
For homeowners, that matters in two ways. First, the equity most California owners built over the past several years is largely still there, which is what a HELOC or home equity loan borrows against. Second, lenders cap how much you can borrow based on your combined loan-to-value, so if prices do soften this winter, the amount available could shrink. Borrowing only what you need, with room to spare, protects you either way.
Flat prices and slower sales can mean more room to negotiate. C.A.R. put the statewide sale-to-list price ratio at 98.9% in August. The rate side is harder. At 7%, the difference between the best and worst offer on the same loan can matter more than a week of market movement, which is the case for having several lenders compete through a broker rather than a single bank. If you work for a major California employer such as Kaiser Permanente or LAUSD, you may qualify for discounted mortgage and home equity pricing through MyRateAdvisor's lender relationships.
The next Case-Shiller release, covering July, is scheduled for Tuesday, September 29. Freddie Mac's next survey comes out Thursday, October 1. The September jobs report follows in early October, and the Fed's next decision is October 27–28. Any of these could move the 10-year Treasury, and with it mortgage rates. None of this is a forecast.
Source: Freddie Mac Primary Mortgage Market Survey via FRED, as of September 24, 2026. Prior-week figures, the 2026 low (5.98%, February 26, 2026), and the January 2025 comparison (7.04%, January 16, 2025) come from the same FRED series (MORTGAGE30US, MORTGAGE15US). Bank prime loan rate, 10-year Treasury yield (September 25, 2026), and effective federal funds rate (August monthly average): FRED. Federal funds target range and rate projections: Federal Reserve, September 16, 2026. California median price, price per square foot, regional changes, unsold inventory index, sales pace, sale-to-list ratio, and the quoted outlook: California Association of Realtors, August 2026 home sales and price report, released September 16, 2026. Metro home price changes: S&P Cotality Case-Shiller Home Price Indexes for Los Angeles, San Diego, and San Francisco (seasonally adjusted, June 2026) via FRED. National median existing-home price: National Association of Realtors via FRED (August 2026). Survey rates are national averages for conventional, conforming loans for borrowers with excellent credit, and may differ from the rate you are offered. Payment and HELOC figures are illustrative estimates based on the assumptions stated in the article, not a quote or rate offer. Discounted pricing, where available, depends on eligibility and lender terms; MyRateAdvisor is not affiliated with or endorsed by any employer named. This article is general information, not financial advice. Talk to a licensed advisor about your specific situation. MyRateAdvisor NMLS #1598577.