When Will Mortgage Rates Go Down in 2026? The Better Question: How Do You Get a Lower Rate Today?

The Question Everyone in Los Angeles Is Asking

If you have typed "when will mortgage rates go down" into Google at midnight, you are in enormous company. It is the single most-Googled mortgage question of 2026, and the search volume spikes after every single Fed meeting.

Here is the honest answer from someone who watches this for a living: nobody knows the date. Not me, not the television experts, not the Federal Reserve itself. And that is exactly why the smarter question is not "when will rates drop," it is "how do I get a lower rate while I wait?"

Because here is what I see on the ground in Los Angeles. Buyers who wait for a number on a screen to rescue them are missing a window where sellers are quietly funding their rate relief. This post shows you the three strategies my clients are using right now, including a new promotion I am running through October that puts thousands of dollars back into your closing.

What the Fed Actually Told Us

The new Fed Chair has signaled that rate cuts are not coming soon. Fannie Mae's latest forecast has the average 30-year fixed mortgage drifting up toward roughly 6.8% by the end of the year. For most of 2026, rates have bounced between about 6.05% and 7.10% depending on the week and the borrower.

I will not pretend to know what the Fed does next, and you should be skeptical of anyone who claims they do. What I can tell you is what elevated rates are doing to the Los Angeles market right now, and it is something most headlines skip.

The Silver Lining: Rising Rates Are Quietly a Buyer's Best Friend

Every time rates tick up, a group of buyers exits the market. Fewer buyers means listings sit longer, price reductions come back, and sellers rediscover the word "concession."

That is the combination nobody talks about: as rates rise, purchase prices soften, and sellers grow more generous. A prepared buyer in today's market can often buy the same house for less money than a year ago, with the seller funding a chunk of the financing strategy that makes the payment work. Rising rates are painful if you wait passively. They are an opening if you come in with a plan.

Here are the three strategies my clients are using right now.

Strategy 1: The 2-1 Buydown (The Seller-Funded Head Start)

What it is

A 2-1 buydown temporarily lowers your interest rate by 2 percentage points in year one and 1 percentage point in year two. In year three, the loan settles at the full note rate for the rest of the term. Nothing about your loan changes except the effective payment in those first two years.

Who pays for it

In today's Los Angeles market, usually the seller or the builder funds it as a closing concession. Builder incentives nationally have been running near 10 to 14 percent of the sale price in 2026, and sellers who remember the frenzy years are offering buydowns to stand out from the listing next door.

What it looks like on a $750,000 loan

Assuming a 6.5% note rate (illustrative example):

 

The two-year savings come to roughly $17,100. Funding the buydown costs about 2.3% of the loan amount, which is exactly why it works so well as a seller concession: the seller spends a modest slice of proceeds to make your payment fit your life now.

Two honest cautions. First, budget around the full payment at the note rate, not the discounted one. The buydown is breathing room, not a miracle. Second, if rates drop meaningfully down the road, you can refinance. The buydown simply buys you comfort while you wait, and the house is yours either way.

Strategy 2: The Permanent Buydown (Buy the Rate Down for Good)

Discount points let you prepay interest upfront in exchange for a lower rate for the life of the loan. One point equals 1% of your loan amount, and each point typically shaves about a quarter of a percentage point off your rate.

On a $750,000 loan, one point costs $7,500 and typically saves around $124 per month. That works out to a break-even near the five-year mark. If you expect to stay in the home longer than that, the math often favors it, especially if you believe rates will not fall soon. If you might move in three years, skip it. This is a stay-awhile strategy.

Strategy 3: Bullseye 90 (My Promotion, Through October 31)

This is the one I am most excited to tell you about. Through the end of October, I am offering Bullseye 90 on new purchases and cash-out refinances: 90 basis points back on your loan amount, credited toward your closing costs or applied to buying down your rate.

Run the number with me. On a $750,000 loan, 90 basis points is $6,750. That is real money, and it is effectively free to you, baked into the promotion rather than added to your rate.

What $6,750 can do for you

·        Cover a meaningful slice of your closing costs: title, escrow, prepaid items, the works.

·        Buy nearly a full discount point, trimming your rate for the life of the loan.

·        Offset more than a third of a complete 2-1 buydown when combined with a seller concession.

·        On a cash-out refinance, absorb the costs of restructuring expensive debt into your home financing.

Why am I running this now? Because rising rates have thinned the buyer pool, and that has pushed prices down in many LA neighborhoods. For a prepared buyer, lower price plus Bullseye 90 plus a seller-funded buydown is a genuinely rare alignment. I would rather my clients capture it than read about it next spring.

The promotion applies to new purchase and cash-out refinance applications through October 31, 2026, subject to qualification and program approval. If you are even thinking about moving or tapping equity, that date matters.

A Word for Homeowners, Not Just Buyers

You do not need to be moving to use this window. A cash-out refinance through Bullseye 90 can fund home improvements, consolidate expensive debt, or build reserves for whatever your next chapter holds, with $6,750 of the costs covered on a $750,000 loan. If you have watched your equity grow for a decade and wondered how to put it to work without selling, this is one of the cleanest setups I have seen this year. And if a no-monthly-payment structure matters more to you, ask me about HomeSafe Second and HELOC for Seniors, which are built for exactly that situation.

Which Strategy Fits You?

·        Buying soon and want the lowest payment out of the gate? Ask for a seller-funded 2-1 buydown, then point Bullseye 90 at your remaining costs.

·        Settling in for the long haul? A permanent buydown, funded partly by Bullseye 90, can beat waiting on the Fed.

·        Staying put but want your equity working? A Bullseye 90 cash-out refinance may do more than sitting on untapped value.

·        Confused? Normal. Bring me the property, the timeline, and the goal, and I will run every scenario side by side.

The Bottom Line

The most-Googled question of 2026 deserves a better follow-up. Rates may not drop soon, and the Fed has all but said so. But your effective rate is not the Fed's decision alone. Sellers are funding buydowns, builders are spending record incentives, and for the next several weeks, Bullseye 90 adds 90 basis points back into your pocket on top.

Waiting is a strategy. It is just rarely the winning one. The buyers and homeowners who act while everyone else refreshes a rate chart are the ones telling the good stories at dinner parties later.

Frequently Asked Questions

Will mortgage rates go down in 2026?

Nobody can promise a date, and the Federal Reserve has signaled that cuts are not coming soon. Fannie Mae's latest forecast has the average 30-year fixed drifting toward roughly 6.8% by the end of the year, which is why I tell clients to focus on the rate they can control today.

What is a 2-1 buydown?

A 2-1 buydown temporarily lowers your interest rate by 2 percentage points in year one and 1 percentage point in year two. In year three, the loan settles at the full note rate for the rest of the term.

Who pays for a 2-1 buydown?

In today's Los Angeles market, usually the seller or the builder funds it as a closing concession. Buyers typically fund permanent buydowns themselves through discount points, which cost about 1% of the loan amount each.

Is it worth buying down my interest rate?

It depends on your timeline. On a $750,000 loan, one point costs $7,500 and typically saves around $124 per month, a break-even near the five-year mark, so it favors buyers who expect to stay put.

Can I refinance during a 2-1 buydown?

Yes, you can refinance at any time. Any unused buydown funds are typically applied to your new loan or returned to you, so the money is not lost if rates drop sooner than expected.

Let's Run Your Numbers

Every situation is different, and the right answer depends on your timeline, your equity, and your goals. I am a licensed realtor and mortgage loan officer, so you get both sides of the equation in one conversation, with one point of contact.

 

Jeni Brill

Monarch Capital Corporation

Call or text: (310) 488-3695

Email: JeniBrill9@gmail.com

www.JeniBrillRealEstate.com

DRE #02006790  |  NMLS #2539716  |  SRES Certified

Rates and figures in this article are illustrative examples based on market data available as of September 2026 and are not a commitment to lend. The Bullseye 90 promotion is available on qualifying new purchase and cash-out refinance applications through October 31, 2026, subject to credit approval and program guidelines. This article is educational and is not financial advice; please consult your own advisors.

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