Rates Crashing the Market? October 2026 Market Update (Redding & Shasta County)

Mortgage rates had been climbing for weeks when I recorded this. If you own a home or you have been thinking about buying, you are probably in one of two camps. Either you are glad you locked when you did, or you are discouraged and not sure where this goes. I made this video for both groups.

As of October 16, 2026, Freddie Mac's rate was about 7.4%. At this time last year it was 6.3%. The reasons stack up. There is the situation with Iran and oil. The Fed raised its rate back on September 16. And bonds have been under pressure, which matters because bond prices are what move mortgage rates. The 10-year Treasury is the easiest thing to watch. We got a jobs report showing jobs weakening, which is usually good for rates, and it did nothing. A lot of economists are now saying higher for longer.

Here is the part that surprised some people. Redfin said about one in five sellers had cut their price, and that sellers outnumbered buyers by the widest margin since it started tracking in 2013. I was around for that market, and it was not a seller's market. Home values nationally are still holding up year over year. But in Shasta County, inventory is up 25% from February. I do not think those numbers are alarming. What I will tell you from my desk is that buyers are negotiating deals I have not seen in years.

One story. I sat next to an executive on a flight to Denver who had listed his home at $1.2 million around July. Over about 90 days he dropped it to $1 million and got an offer of $950,000. He was upset, but he told me he thought he should take it, because he was afraid it would not get better. A lot of sellers feel that way now.

So here is what we coach buyers on. Be ready to negotiate, because you have an advantage you have not had for years. And look at creative financing. One option we were using is a temporary buydown that lowers the rate by 1% for the first year of a 30-year fixed. Some buyers look at adjustable rates fixed for 5 to 7 years. A few of our investors have a 40-year fixed. Most people do not see these as permanent solutions. They are for the buyer who has to buy now and is watching the payment.

For homeowners, I talk to people with credit card debt at 20, 22, 23%. Sometimes someone calls with a 4% mortgage and $50,000 in card debt and says they know they should not touch the mortgage. We can show two or three ways to cut the monthly outflow, even at today's rates. And for people who love their low rate, a HELOC can still make sense for fixing up the home.

This is not 2008. Affordability is slowly returning, and in my view rates are more of a problem for the seller than the buyer today. If you want to see your options with real numbers, look at equity lending or get your rate. MortgageOne is now licensed in 49 states.