The Federal Reserve met on October 28 and did what most expected: it held interest rates steady. The federal funds rate stays in its current range of 3.75% to 4.00%, unchanged for the first time since the Fed's September hike, which was its first increase in three years.
Two of the twelve voters wanted a quarter-point increase, but the majority chose to hold as inflation remains elevated and the Fed stays committed to returning to its 2% target. Fed Chair Kevin Warsh also announced that the central bank will hold fewer rate-setting meetings starting in 2027.
What this means for mortgage rates
Rates don't move one-for-one with the Fed, but they're feeling the same pressure. The 30-year fixed-rate mortgage is averaging around 7.3% nationally right now (down slightly week over week), with the 10-year Treasury yield hovering just below 5%. That's meaningfully higher than a year ago, when the 30-year averaged about 6.2%, which is why so many homeowners are holding on to low rates and inventory is tight.
The Pasadena picture
Pasadena home values have been remarkably stable. The average home value sits around $1.21 million, up 0.1% over the past year, and homes are going to pending in about 19 days. Inventory has been growing through the second half of 2026, which is slowly giving buyers more options and a touch more negotiating room, even as competition stays real for well-priced homes.
What this means for you
- Buyers: with rates near 7.3%, your monthly payment math matters more than ever, but a flat Fed and rising inventory are opening doors that didn't exist a year ago. Getting pre-qualified now puts you ready to move the moment the right home appears.
- Sellers: price it right and you still sell quickly: Pasadena homes are still finding buyers in weeks, not months.
- Investors: elevated rates mean more motivated sellers and off-market opportunities. That's exactly the window where patient buyers with solid financing win.
Whether you're buying, selling, or investing, the smartest move is the same: talk through your numbers with someone who knows the market and the mortgage side. I'm licensed in California since 1996 and review 500+ off-market properties a month to find deals that never hit the MLS. Let's talk: 626-314-9170.
Read next
Related guides on this site
This guide is for general information, and is not mortgage, legal, or tax advice. Loan products and rates vary by lender, and all terms come from the lender, never from this website.
