Blog > Mortgage Rates Update - January 16, 2026 (What It Means for Temecula & SoCal Buyers)
Mortgage Rates Update - January 16, 2026 (What It Means for Temecula & SoCal Buyers)
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Mortgage Rates Update - January 16, 2026
🏡 Quick Answer
Mortgage rates stayed historically low this week — still among the lowest we’ve seen in years — even though daily quotes moved up slightly from the most recent lows. For borrowers thinking about buying, refinancing, or tapping equity, this still offers real opportunity compared with last year’s higher rate environment.
🧠What Happened This Week
- Rates ticked slightly higher from last week’s lows, but remain near the best levels we’ve seen in years.
- Last week’s sharp drop was driven by a surge of mortgage-backed securities buying, which helped improve affordability and briefly pushed some daily quotes under 6%.
- Bond market movement (including Treasury yield shifts) has created some upward pressure, which is why we’re seeing small bumps even in a “better” rate environment.
đź“Ť What This Means for You (Temecula & Southern California)
If you’re thinking about buying a home, even a modest dip in rates can improve monthly purchasing power — especially in markets like Temecula, Murrieta, Menifee, and North County San Diego where inventory stays tight.
For current homeowners, lower rates can also create better opportunities to refinance or access equity for upgrades, debt consolidation, or future plans.
🔎 Tips From Lumina
- Lock sooner rather than later if you see a rate you like — markets can swing fast with economic data.
- Compare lender quotes — a small difference in rate or points can add up big over time.
- Refinancing could still make sense if your current rate is above today’s range and you plan to stay put for a few years.
đź“Ł Your Questions Answered (FAQ)
Should I wait for rates to drop further?
Waiting for a big drop isn’t guaranteed. If you find a payment and option that fits your goals, locking now can protect you from short-term upward swings.
Can I refinance if my rate is already low?
Possibly — especially if you’re moving from an ARM to a fixed rate, shortening your term, or improving your overall plan. We’ll compare costs vs. savings.
Will lower rates improve affordability in Southern California?
Lower rates help, but home prices and competition still matter. Strategy (and strong pre-approval) is key in Temecula and surrounding areas.
đź“… Bottom Line
Despite minor weekly bumps, mortgage rates remain historically attractive — and that can open doors for smart moves in 2026, whether you’re buying, refinancing, or leveraging equity.
Felicia Morales
Broker Owner, Lumina Real Estate & Lending
Serving Southern California with honest advice and real solutions.