Mortgage Rates Rise Again as Inflation Keeps Housing Market on Edge
The housing market is entering the fall with a familiar challenge: higher borrowing costs. The latest economic data shows a resilient job market, but persistent inflation, rising energy prices and renewed geopolitical uncertainty are pushing mortgage rates higher. For buyers, affordability remains a major hurdle, while homeowners continue to benefit from substantial equity and relatively low mortgage delinquency rates. In Southern California, these competing forces are creating a market that is stable but increasingly sensitive to changes in mortgage rates.
Inflation Keeps Pressure on the Federal Reserve
August inflation showed renewed momentum, with the Consumer Price Index rising 0.4% from July, compared with a 0.1% increase the previous month. Gasoline prices jumped 3.9%, accounting for more than one-third of the monthly increase, while the overall energy index rose 2.1%.
Inflation increased 3.4% from a year earlier, remaining well above the Federal Reserve's 2% target. Persistent inflation gives the Fed less flexibility to lower rates and increases the possibility that interest rates could remain elevated—or even move higher.
Mortgage Rates Move Back Toward 7%
Higher inflation expectations, rising oil prices and geopolitical uncertainty have pushed bond yields higher, putting renewed upward pressure on mortgage rates. Freddie Mac reported that the average 30-year fixed mortgage rate reached 6.76% as of September 10, up from 6.71% the previous week and 6.35% a year ago.
Mortgage News Daily's daily rate has moved above 7% for some borrowers, highlighting just how volatile the mortgage market has become. For homebuyers, even relatively small changes in mortgage rates can have a meaningful impact on monthly payments and purchasing power. The result is likely to be continued pressure on housing demand, particularly in higher-priced markets such as Southern California.
Job Market Remains Resilient
The labor market is providing an important counterbalance. Employers added 162,000 jobs in August, while unemployment remained at 4.1%. Earlier job estimates were also revised higher.
However, there are signs that hiring momentum is slowing. ADP reported just 38,000 private-sector jobs added in August, while job openings remained relatively steady at approximately 7.3 million.
A stable labor market is positive for housing because it supports household income and reduces the likelihood of widespread distressed sales. At the same time, slower wage growth and elevated consumer debt are limiting how much additional housing expense many households can comfortably absorb.
Long Beach Housing Market Remains Relatively Resilient
The Long Beach housing market continues to show resilience despite higher mortgage rates. The median sale price for all home types in Long Beach reached approximately $899,000 over the three months ending August 2026, up 5.8% from a year earlier. Homes were selling in an average of about 43 days, compared with 50 days a year earlier.
For homeowners in neighborhoods such as Los Altos, East Long Beach, Belmont Shore, Naples, Bixby Knolls, and California Heights limited affordability continues to be balanced by relatively strong demand and constrained inventory.
Orange County Market Shows Strength, but Sales Are Slowing
Orange County is showing a similar pattern. The overall median sale price was approximately $1.22 million over the three months ending August, up 3.9% from a year earlier. However, the number of homes sold declined 3.1% year over year.
The latest Orange County REALTORS market snapshot provides an interesting distinction between property types. Detached-home prices were up 3.7% year over year, while sales declined 3.9% and available inventory fell 13.5%.
This suggests that well-priced homes in desirable Orange County communities—including Rossmoor, Huntington Beach, Los Alamitos and surrounding areas—can continue to attract buyers, even as higher rates reduce the overall number of transactions.
What This Means for Buyers and Sellers
For buyers, the biggest challenge remains affordability. Higher mortgage rates can reduce purchasing power, but slower sales and increased negotiating opportunities in some areas may create advantages for buyers who are financially prepared.
For sellers, the market is still favorable for well-priced, properly marketed homes, but today's buyers are increasingly payment-conscious. Pricing a property correctly from the beginning is more important than it was during the highly competitive markets of recent years.
Bottom Line
The Southern California housing market remains fundamentally supported by a resilient job market, homeowner equity and relatively limited distressed selling. However, inflation and mortgage rates near 7% are likely to keep a lid on buyer demand and sales activity in the near term. For Long Beach and Orange County homeowners, understanding the conditions in your specific neighborhood is more important than relying solely on broad national housing trends.
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2601 E. Ocean Blvd #807
Long Beach, CA 90803
2 Bed | 2 Bath | 1,016 SF | $939,000 (New Price)
Amazing ocean views will take your breath away in this highly upgraded, TOP FLOOR, END UNIT 2 bedroom, 2 bathroom luxury condo with 1,016 square feet of well-designed living space and 2 separate parking spaces. A dramatic gallery-style entryway complete with LED-lit art niches, textured wave tiled walls, inlay flooring, and uplighting within the unique ceiling welcome you to this home. At the end of this striking entry sits a bar with wine refrigerator and glass front cabinets. The sleek kitchen is equipped with a Thermador induction cooktop and oven with rotisserie feature, countertops that just don’t seem to get stained, glossy, woodgrain styled cabinetry, and a breakfast bar ideal for casual dining. The open concept living room showcases a modern fireplace, ambient lighting, mirrored accent walls, and two accordion balcony doors that frame the incredible 270 degree ocean and city views while filling the home with natural light. The spacious primary suite is highlighted by an architectural ceiling, French doors, and Juliette balcony with views of Signal Hill - especially pretty at night. The custom walk-in closet with abundant built ins leads to a serene bathroom with a large shower featuring multiple shower heads and body sprays, marble vanity, touch light smart mirrors and a bidet. The guest bedroom enjoys equally beautiful city sights through the French doors, an art niche, and mirrored double closets. The lovely second bathroom features quartz countertops, oversized tile flooring and a shower/tub combo with accent glass tiles. The oversized tile extends throughout the main living spaces, while both bedrooms have luxury vinyl flooring. Access to the in-unit European laundry machine is located in the hallway closet that also houses the tankless water heater. Additional amenities include a mini-split unit with heat and air conditioning, surround sound in the living room, and a desirable location within the building set back from the street so that the unit stays quieter.
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20203 Paseo Granada
Cerritos, CA 90703
4 Bed | 3 Bath | 1,965 SF | $1,349,000
Welcome to this beautifully updated 4-bedroom, 3-bath home in the heart of Cerritos, where timeless design meets modern comfort. Soaring vaulted ceilings create an impressive first impression, opening to a spacious living room and formal dining area. Fresh interior and exterior paint and new luxury vinyl plank flooring throughout provide a bright, contemporary, move-in-ready feel. The beautiful kitchen is designed for both everyday living and entertaining, featuring espresso shaker cabinetry, granite countertops, a large peninsula, and stainless steel appliances. The light-filled family room offers recessed lighting and a cozy gas fireplace, while an additional enclosed patio provides versatile bonus space not included in the listed living area. The first-floor bedroom offers flexibility for guests, a home office, or multigenerational living. Upstairs, three additional bedrooms include a spacious primary suite with two walk-in closets and a beautifully remodeled bathroom featuring white shaker cabinetry, quartz countertops, and a stunning walk-in shower. The two front bedrooms each feature sliding doors that open to a generous front patio, creating additional private outdoor space. Enjoy the comfort for new central heating and AC. Lush landscaping surrounds the home, providing a welcoming setting for outdoor entertaining and relaxation. Ideally located in the award-winning ABC Unified School District, with access to nationally ranked Whitney High School (grades 7–12; admission by entrance exam), this home is also conveniently close to H Mart, Cerritos Towne Center, shopping, dining, parks, and major freeways. Beautifully updated, spacious, and ideally located, 20203 Paseo Granada offers the perfect combination of comfort, style, and convenience in one of Cerritos' most desirable communities.
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258 Argonne
Long Beach, CA 90803
4 Bed | 3 Bath | 3,004 SF | $2,200,000
Rarely available, this beautiful Tudor Revival is located in the coveted Belmont Heights Estates. Built in 1928, this home spans over 3,000 square feet with 4 bedrooms and 3 bathrooms on a 6,361 square foot lot including a 4-car garage. An inviting entry with original wood detailing opens to a breathtaking living room defined by soaring ceilings, exposed decorative timber trusses, and an interior balcony. The remodeled kitchen blends modern amenities while maintaining a timeless design, featuring a Wolf range, stainless steel appliances, a walk-in pantry, abundant cabinetry and prep space, a peninsula with seating for casual dining, a dedicated coffee station, and the first of two washer/dryer locations. An arched opening leads to the sunlit dining room, complete with a custom buffet and elegant wallpaper. A separate family room with built-ins provides a comfortable space overlooking the front and back yards, while a dedicated office and a period-style three-quarter bath complete the first floor. Upstairs, natural light floods all 4 bedrooms, each with walk-in closets, and 2 vintage bathrooms. A central flex space—ideal as a playroom, teen lounge, or den—separates the bedrooms and adds versatility. Set back from the street, the home features a large front yard and a backyard patio perfect for entertaining or enjoying the wonderful Long Beach weather.
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700 E. Ocean Blvd #1102
Long Beach, CA 90802
2 Bed | 2 Bath | 1,084 SF | $483,000
Spectacular Panoramic City Views from the Iconic International Tower! Experience luxury high-rise living in this beautifully updated 2-bedroom, 2-bath condo perched in one of Long Beach's most recognizable architectural landmarks. Floor-to-ceiling windows fill the home with natural light and frame breathtaking panoramic views of the city skyline. Step onto the expansive wrap-around balcony from the living room or either bedroom to enjoy stunning sunrises and evening city lights. Designed for both everyday living and entertaining, the remodeled kitchen features elegant white cabinetry and striking stone countertops. The flexible floor plan includes two spacious primary suites each with direct balcony access and their own bathrooms, making it ideal for guests, multigenerational living, or a private home office. Additional features include modern heating and air conditioning, plus an in-unit washer/dryer, and all appliances included. Residents enjoy resort-style amenities including 24-hour guarded security, controlled access, a sparkling pool, fitness center, recreation room, billiards room, barbecue area, meeting room, beautifully maintained grounds, guest parking, and secure garage parking. HOA dues include water, trash, sewer, basic cable and High Speed Internet. Beyond your front door awaits the very best of the Long Beach waterfront lifestyle.
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3672 Montego Dr.,
Huntington Beach, CA 92649
3 Bed | 3 Bath | 1,818 SF | $1,205,000
WATERFRONT FIXER WITH INCREDIBLE POTENTIAL! First time on the market since this Seagate home was built. This mostly original Davenport model with 3 bedrooms and 3 bathrooms presents a rare opportunity to create your ideal Huntington Harbor home. An entry featuring unique staircases and a skylight leads to a spacious dining room and step down living room. The living room showcases a classic brick fireplace and a wall of glass (sliding door and window) that opens to a waterside patio with lagoon views - perfect for entertaining friends and family. A gate at the end of the patio provides direct water access to launch your kayak or paddle board. Back in the home, the kitchen layout includes abundant cabinetry, ample counter space and the washer/dryer. Also on the first floor is a bedroom with custom built shelves and a ladder accessible loft plus a 3/4 guest bathroom. Upstairs, the spacious primary suite with vaulted ceiling offers a private balcony overlooking the water, large closet, and an en suite bathroom with dual vanities. The last bedroom and bathroom are also located on this level. A third story bonus living area is accessed by a spiral staircase and has a wraparound floor plan providing a great flex room for a work from home office, gym, or whatever best suits your needs. A detached, two-car garage is ideally situated close to the home. The beautiful Seagate community offers multiple tennis courts, pickleball, pools, clubhouses, lush greenbelts and a resort-like feel.
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13631 Richardson Way
Westminster, CA 92683
3 Bed | 1.5 Bath | 1,128 SF | $985,000
Beautifully maintained 3-bedroom / 1.5-bathroom home offering a blend of comfort, functionality, and inviting outdoor living. The property features generous RV parking with an oversized driveway (36’7” x 24’11”), perfect for recreational vehicles, extra cars, or toys. Inside, enjoy engineered hardwood flooring, classic wood shutters, open beam ceilings, dual split A/C, ceiling fan, rustic kitchen with real wood cabinets, interior laundry room, and a cozy wood-burning fireplace. A bright sunroom and adjoining bonus room provide flexible space for an office, studio, or relaxation retreat. The private, landscaped backyard is ideal for entertaining, complete with a shaded patio cover, custom tiled porch matching the sunroom, plenty of green grass, rose bushes, shrubs, and a mature avocado tree. Exterior has been freshly painted with new vent screens, and the upgraded shed with dual pane white vinyl windows adds valuable additional storage, along with the spacious two-car garage. Location is also close to freeways, shopping, and dining!
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700 E. Ocean Blvd #1501
Long Beach, CA 90802
2 Bed | 2 Bath | 1,084 SF | $550,000
Welcome to International Tower, one of Downtown Long Beach's most iconic Mid-Century Modern landmarks. This beautifully remodeled 15th-floor residence offers 2 bedrooms, 2 bathrooms, and 1,080 square feet of sophisticated coastal living. Enjoy peekaboo ocean views, marina views, sparkling city lights, and a spacious wraparound balcony that invites you to relax and enjoy the vibrant waterfront setting. Designed with quality and attention to detail, the home features gorgeous hand-fired Italian tile flooring throughout, extending seamlessly onto the wraparound balcony to create a true indoor-outdoor living experience. The designer kitchen showcases waterfall stone countertops, sleek contemporary cabinetry, stainless steel appliances, and a breakfast bar perfect for casual dining or entertaining. Custom blackout and sheer window coverings provide both privacy and elegance while allowing you to control the abundant natural light throughout the home. A rare and highly desirable feature, this residence is one of only a handful of homes in the building equipped with air conditioning, offering year-round comfort. The flexible floor plan includes two spacious primary suites, making it ideal for guests, multigenerational living, or a private home office. Residents enjoy resort-style amenities including 24-hour guarded security, controlled access, a sparkling pool, fitness center, recreation room, billiards room, barbecue area, meeting room, beautifully maintained grounds, guest parking, and secure garage parking. Beyond your front door awaits the very best of the Long Beach waterfront lifestyle. Walk or bike along the shoreline, explore Shoreline Village and Rainbow Harbor, enjoy waterfront dining, or spend the afternoon at the Aquarium of the Pacific. Throughout the year, Long Beach hosts concerts, festivals, farmers markets, and internationally recognized events, including the Long Beach Grand Prix.
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3142 Quail Run Rd
Rossmoor, CA 90720
3 Bed + Den | 3.5 Bath | 2,752 SF | $1,835,000
Welcome to this exceptional opportunity in the highly sought-after community of Rossmoor! Offering 2,752 square feet of living space, this charming two-story home presents incredible value and endless potential for buyers looking to personalize a home in one of Orange County’s most desirable neighborhoods. Lovingly maintained by the same family for more than 50 years, the home features 3 bedrooms, a large den, and 3.5 bathrooms. Located on a beautiful tree-lined street within the award-winning Los Alamitos School District, this home welcomes you with a spacious foyer, beautiful wood floors, and a large light-filled living room with cozy fireplace. The remodeled kitchen features granite countertops and stainless steel appliances and flows seamlessly into the formal dining area overlooking the backyard — perfect for entertaining and everyday living. The versatile downstairs layout includes one bedroom plus a large den with a fireplace and attached full bath, ideal for a family room, guest suite, or home office. Upstairs, you’ll find two spacious primary suites with vaulted ceilings and ensuite bathrooms. The main primary suite offers dual walk-in closets and a large bathroom with dual sinks, soaking tub, and walk-in shower. Step outside to enjoy the private backyard retreat featuring a sparkling pool and shaded patio, perfect for relaxing or hosting gatherings. Enjoy all that Rossmoor has to offer, including nearby Rossmoor Park with pickleball courts, tennis courts, basketball, softball fields, and playgrounds, plus close proximity to Lee Elementary, Weaver Elementary, Oak Middle School, shopping, and dining. This is a rare opportunity to create your dream home in one of Orange County’s premier neighborhoods.
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