Housing Market Update: Is the 'Move Act' Actually Going to Help?

Mortgage rates just hit the highest point they have been in a year, and there are plenty of headlines saying a housing crash is coming. I wanted to look at the actual numbers, including the ones here in Redding.

First, why rates went up. A big jobs report came out in the first week of September, about 155,000 jobs against an estimate of around 50,000. Strong job numbers speak inflation to the markets, and that is not good for rates. Add the Iran conflict, oil prices, and a new Fed that said hiking is not off the table, and a lot of people are bracing for higher for longer. Across the board, rates were in the high sixes as of this video, September 9, 2026.

Now the housing side. Nationally, the median list price was about $424,000, down about 1% from last year, with just over 1.1 million homes on the market. California's median list price was about $730,000, down about 2.7%, and listings were up 42% from January. That is a flat market with more inventory, not a crash. In Redding, the median list price was about $434,000. I like to give two inventory numbers, because one by itself is misleading. There were 627 active listings in the city, down about 15% from last summer's peak but up 34% from January. Homes were taking about 58 days to close, and Redfin showed homes sold in 96002 and 96003 up 23 to 25% from last year. Buyers have choice, and sellers are starting to compete.

Here is the payment math, which I think is smaller than most people expect. On a $434,000 house with 20% down at 6.89%, principal and interest is just under $2,300 a month. A half point lower saves about $115 a month. A full point saves about $228. On a $650,000 house it is about $172 and $340. That is real money, but it is not the whole story. This is not financial advice, just simple math. The number I find most interesting is list price versus closed price, which was right around 95%. After years of full-price sales, that is good news for buyers.

If you are buying now, a temporary buydown is one tool. That is where the seller contributes to get you a rate 1% to 3% lower for the first one to three years. It is still a 30-year fixed, and the idea is to refinance when rates change. If you carry credit card debt at 20%, there are two or three options to restructure it that most people have not heard about.

A few things to watch. The California FAIR Plan's approved average rate increase of 29.1% took effect October 15, 2026, so build insurance into your budget. Vantage Score 4.0 is opening up, which could qualify more people. And the Move Act, a proposed portable mortgage, has not been approved. CPI on Friday the 11th mattered because the Fed said a hike was on the table.

If you want your options with real numbers, look at conventional financing or get your rate. MortgageOne is now licensed in 49 states.