September 2026
Is this the worst time to buy a house in California? Why timing really is everything
Source: MSN
It’s easy to see the steep median home prices today and think it’s never been worse, but California has long dealt with high prices. Rising prices and reforms making lending more stringent, however, have changed the demographic of the median homebuyer over the past two decades.
“The average California home buyer today looks very different than a generation ago,” CALIFORNIA ASSOCIATION OF REALTORS® President Tamara Suminski told The Los Angeles Times in a written response to questions.
“Buyers are entering the market later, saving longer, and facing higher barriers to home ownership as home prices, mortgage rates, living costs, and years of limited housing supply continue to strain affordability,” she wrote.
California Cities Are Evading State Mandates To Build More Housing, Lawsuits Claim
Source: Realtor.com
Pro-housing groups from the nonprofit Californians for Homeownership have filed a set of lawsuits accusing three California cities – San Diego, San Francisco, and Montebello – of unfairly blocking more housing development near transit.
The group, which is financially backed by the CALIFORNIA ASSOCIATION OF REALTORS®, said the suit aims to compel the three cities to pick up the pace of approving new projects.
The three cities in question have misinterpreted the law or used other restrictions to get around it, C.A.R. President Tamara Suminski said in a statement.
“Cities throughout California must play by the same set of rules established by our Legislature for the development of housing,” Suminski said. “Through these new lawsuits, Californians for Homeownership continues to play a vital role in addressing housing affordability through impact litigation.”
Proposition 37 proposes $25 billion loan program to help Californians buy homes
Source: KCRA 3 Sacramento
Proposition 37 is a measure on the November ballot that proposes a $25 billion loan program to help California residents overcome the challenge of affording down payments on new homes. It’s a revenue bond that won’t cost taxpayers any money.
The measure, authored by former state Senate Majority Leader and California Assembly Speaker Bob Hertzberg, would allow the state government to issue bonds to help residents borrow up to 17% of their down payment, requiring them to contribute at least 3% themselves, while their primary mortgage would cover the remaining 80%.
“Homeownership is the biggest thing to create generational wealth, not even a question. Instead of rent, you have a house that rises in value, you’re paying down the mortgage,” Hertzberg said. “It creates real value, real generational wealth for people.”
Stable Credit Scores Mask Growing Mortgage Affordability Divide
Source: National Mortgage Professional
The average American’s credit score is holding steady. Beneath that stability, however, the divide between financially secure consumers and borrowers struggling with housing costs is widening.
The national average FICO Score stood at 714 in April, unchanged from October 2025 and one point lower than a year earlier, according to FICO’s new Fall 2026 Score Credit Insights report.
Mortgage delinquencies initially appeared equally reassuring. The share of borrowers 30 days behind declined to 1.35% from 1.42% a year earlier. But those averages obscure mounting pressure among lower-scoring borrowers and a mortgage payment that has grown much faster than inflation.
The findings point to an increasingly important distinction for mortgage originators: A consumer can maintain a solid credit score without having the income or monthly cash flow needed to support today’s housing costs. Debt-to-income ratios now account for more than one-third of mortgage denials, according to a White House economic report released earlier this year.
Mortgage rates rise, bringing the average rate on a 30-year home loan to where it was 4 weeks ago
Source: Associated Press
Mortgage rates ticked higher this week, nudging the average long-term U.S. home loan rate closer to its recent high for the year.
The benchmark 30-year fixed rate mortgage rate edged up to 6.66% from 6.65% last week, mortgage buyer Freddie Mac said Thursday. One year ago, the average rate was 6.56%.
The average rate is now back to where it was four weeks ago and is just shy of 6.69%, the high for the year it reached earlier this month.
Proposition 37 would establish a down payment funding program to help eligible middle-income Californians purchase newly constructed homes. For families who cannot clear the down payment hurdle, Proposition 37 can be the difference between renting and owning.
More importantly, Proposition 37 costs taxpayers nothing. The loans would be funded through revenue bonds, which are repaid by the borrowers themselves with no cost to taxpayers. Private lenders would originate and service every loan.
Demand for riskier mortgages rises again, along with interest rates
Source: CNBC
Mortgage rates continue to climb, prompting more borrowers to search for savings. They found that in riskier, adjustable-rate mortgages, or ARMs.
Demand for those loans made up 8.5% of all mortgage applications last week, up from 8% the previous week, according to the Mortgage Bankers Association, and the highest level since June. In the first years of the pandemic, when mortgage rates fell to historic lows, demand for ARMs was barely 3%.
Major California home insurer plans to write new policies for first time since 2022
Source: Yahoo!
For the first time since 2022, Allstate Insurance could begin writing new home insurance policies in California – with one condition.
Last Monday, the company submitted a filing to the California Department of Insurance indicating it would reopen for business if regulators approve an overall 1.4% rate increase for existing as well as new customers.
Two-thirds of customers would actually see their rates decrease, according to the filing. Another 30% would see rates increase up to 55%; less than 4% of customers’ rates would increase between 55% and 185%. These rates could change as regulators complete their review.
Home sales drop nationally to 14-month low as rising mortgage rates stun buyers
Source: Realtor.com
Home selling suffered a setback in August, both on a monthly and annual basis, as surging mortgage rates kept more would-be buyers on the sidelines at the end of summer.
Existing-home sales decreased to a seasonally adjusted annual rate of 3.98 million, down 2% from July and 1.2% from a year ago, the National Association of REALTORS® reported Thursday. The last time sales dipped below the 4 million threshold was in June 2025.
Nearly half of Americans would consider a 3D-printed home
Source: National Mortgage Professional
Nearly half of Americans would consider buying a 3D-printed home if it met their location and budget needs, but concerns affecting the property’s value and marketability could create additional hurdles for lenders and loan originators.
A new LendingTree survey found that 49% of consumers would consider purchasing a 3D-printed home, while 25% said they were unlikely to do so. In a separate question, 36% said they believe 3D-printed homes could make homeownership more affordable within the next decade.
Mortgage rates climb: Average rate on a 30-year home loan hits the highest level in over 14 months
Source: Associated Press
Mortgage rates rose for the third week in a row, pushing the average long-term U.S. home loan rate to its highest level in over 14 months.
The benchmark 30-year fixed rate mortgage rose to 6.76% from 6.71% last week, mortgage buyer Freddie Mac said Thursday. One year ago, the average rate was 6.35%.
August 2026
Fannie and Freddie’s New Condo Mortgage Rules Could Mean More Delays and Denials, Experts Say
Source: Realtor.com
Fannie Mae and Freddie Mac are rolling out a new set of rules aimed at making condos safer. But they come with some extra caveats that would-be condo owners ought to know.
This week, the Federal Housing Finance Agency enacted a set of rules announced in March that change insurance requirements for condominium buildings and communities. The new rules require more thorough reviews of a condo association’s finances, as well as the building’s condition.
Buying a Home Remains Out of Reach with Average Prices Over $1M
Source: NBC San Diego
Homeownership remained out of reach for most households during the second quarter, despite housing affordability holding steady from the previous quarter, according to a report released Wednesday by the California Association of REALTORS.
Statewide, housing affordability fell to 19% in the second quarter from a four-year high of 22% in the first quarter as mortgage rates climbed and home prices rebounded. The statewide median home price rose to $916,750, requiring a minimum annual income of $228,400.
U.S. Construction Spending Unexpectedly Falls in June
Source: Sacramento Bee
U.S. construction spending unexpectedly fell in June as higher mortgage rates continued to weigh on homebuilding.
The Commerce Department’s Census Bureau said on Monday that construction spending dipped 0.1%. Construction spending in May was revised to show it was unchanged instead of edging up 0.1%, as previously reported. Economists polled by Reuters had forecast construction spending would climb 0.2%.
JPMorgan Chase to Invest $750 Billion in Increasing the U.S. Housing Supply and Homeownership
Source: CBS News
JPMorgan Chase said on Monday it will invest $750 billion through 2035 to boost the U.S. housing supply, including financing for 1 million affordable housing units and assisting 500,000 people in buying homes.
The investment is part of JPMorgan Chase’s American Dream Initiative, announced in March to boost economic mobility at a time when many Americans say traditional financial milestones are slipping further out of reach. The investment represents a 40% increase in the bank’s housing capital deployment compared to the previous 10 years, the company said in a statement.
Mortgage Rates Rise for 5th Straight Week, Hitting Levels Not Seen Since 2025 for 2nd Week in a Row
Source: Associated Press
The average long-term U.S. mortgage rate rose for a fifth consecutive week to its highest level in just over a year, marking the latest strain for prospective homebuyers who are facing steep borrowing costs.
The benchmark 30-year fixed rate mortgage rate rose to 6.69%, mortgage buyer Freddie Mac said Thursday, up slightly from 6.66% reported last week. By comparison, the average rate was 6.63% at this time last year — and hadn’t been higher than its current level since late July in 2025.
Capital Gains Exclusion Bill Draws More Backers in Senate, House
Source: Real Estate News
A bipartisan proposal to increase the capital gains tax exclusion on the sale of a primary residence continues to gain momentum in Congress. The More Homes on the Market Act would raise the exclusion to $500,000 for individual filers and $1 million for married couples filing jointly, while also indexing the amounts for inflation. The bill recently added new co-sponsors in both the House and Senate, bringing total support to 174 lawmakers. Advocates say the measure could encourage more homeowners to sell, potentially increasing housing inventory.
New Federal Rules Could End Mortgage Escrow Interest for Some Homeowners. States are Suing to Block Them
Source: CNBC
A coalition of 10 states, including California, has sued the Office of the Comptroller of the Currency over new federal rules that exempt national banks from state laws requiring interest payments on mortgage escrow accounts. The states argue that the agency exceeded its authority and weakened consumer protections, while the OCC maintains that federal banking law allows federally chartered institutions to determine their own escrow account terms. The outcome could affect whether some homeowners earn interest on funds held for property taxes and insurance.
Buyers are Being Watched at Showings and it’s Costing Deals
Source: Mortgage Professional
A new LendingTree survey found that cameras and recording devices have become common during home showings, with nearly three-quarters of recent buyers reporting they noticed surveillance. The survey found that 19% of buyers left a showing because of recording devices, while 18% decided not to make an offer. Many buyers also said they changed their behavior during showings, avoiding discussions about budgets, offer strategies, or their opinions of a property.
The report suggests that visible surveillance may affect both buyer comfort and negotiations. Analysts advise agents to remind clients to assume they may be recorded during showings and to save discussions about pricing or strategy until after they leave the property
Record Home Prices and High Mortgage Rates Send Buyers to the Sidelines
Source: Los Angeles Times
U.S. existing-home sales fell 1.7% in July to a seasonally adjusted annual rate of 4.06 million, although sales were 0.7% higher than a year earlier. The national median sales price rose 2% year over year to $434,100 as limited inventory and elevated mortgage rates continued to constrain the market. The average 30-year fixed mortgage rate reached 6.69%, its highest level in more than a year. Meanwhile, first-time buyers accounted for 29% of sales, well below the historical average of about 40%
Mortgage Rates Dip Slightly for the First Time in Six Weeks
Source: Associated Press
The average long-term U.S. mortgage rate fell slightly for the first time in six weeks on Thursday, marking a glimpse of relief for prospective homebuyers — although borrowing costs remain steeper than they were a year ago.
The benchmark 30-year fixed rate mortgage rate tumbled to 6.67%, mortgage buyer Freddie Mac said Thursday, down from 6.69% reported last week. Still, by comparison, the average rate was 6.58% at this time in 2025.
C.A.R. Advocacy Leads to Key Revisions in Pending State Bills
Two California bills that have drawn significant attention from the real estate industry were recently amended in ways that address major concerns raised by C.A.R.
AB 2795 originally raised concerns because it could have been interpreted to require California real estate licensees involved in franchise sales and business opportunity brokerage activities to obtain an additional license from the Department of Financial Protection and Innovation (DFPI). C.A.R. opposed the bill and worked with the author, committees, and stakeholders to secure amendments clarifying that licensed real estate professionals may continue conducting franchise sales and related business opportunity transactions under their existing Department of Real Estate license. Following those amendments, C.A.R. withdrew its opposition.
AB 1776 has been a concern for businesses statewide because it expands California antitrust law to reach single-firm conduct, potentially increasing litigation exposure, compliance uncertainty, and costs. The bill was amended to remove its private right of action provision, which C.A.R. identified as the most concerning aspect of the measure. The amendment reduces the risk of costly and burdensome litigation, though C.A.R. and other business groups will continue their opposition efforts as the bill moves forward.
C.A.R. will continue to track these bills and advocate for the interests of REALTORS®. Stay tuned for future updates as the legislative session progresses.
Home Sales Pull Back in July as California’s Median Price Slips Below $900,000
California home sales retreated in July after a solid rebound in June but remained above their year-ago level for the fourth consecutive month as the market continues to search for sustained momentum and lower interest rates, C.A.R. reported today.
Existing, single-family home sales totaled 263,170 in July on a seasonally adjusted annualized rate, down 6.0 percent from June and up 1.1 percent from July 2025.
The statewide median home price declined to $887,680, down 1.9 percent from $904,640 in June and up 0.3 percent from $885,180 in July 2025.
C.A.R. Weekly Market Update
The economy and housing market entered the third quarter on uneven footing, with California home sales softening, consumer spending pulling back, and confidence measures improving but still fragile. Inflation has cooled, offering some relief to households and financial markets, but price growth continues to run ahead of wage gains, keeping pressure on consumers. At the same time, businesses and CEOs remain cautiously optimistic, helped by signs of easing price pressures and steadier hiring plans. Challenges remain, particularly for housing demand and consumer resilience, but the fundamentals could gradually improve in the final quarter if progress in U.S.-Iran peace negotiations helps ease energy-market volatility, reduces inflation risks, and supports a more stable labor-market outlook.
Program On California Ballot Could Cut Home Down Payments To 3%
Source: Yahoo! News
California home prices are so high that households in many regions can’t even afford a down payment. A proposal going to the state’s voters in November would help, proponents say.
Proposition 37, embedded deep in the laundry list of potential policies that Californians will vote on later this year, would allow the state to loan middle-income residents up to 17% of the purchase price of a newly constructed home. Combined with a traditional mortgage, the loan could allow homebuyers to put down as little as 3% on their new home.
California Home Sales Pull Back in July as Median Price Slips Below $900,000
Source: Realty Wire
California home sales pulled back in July and the statewide median price slipped below $900,000 for the first time in four months, as mortgage rates that briefly touched a 12-month high weighed on the nation’s largest housing market, the California Association of Realtors reported.
Statewide sales fell to a seasonally adjusted annualized rate of 263,170 homes in July, down 6.0% from June but still up 1.1% from a year earlier, according to C.A.R.’s July 2026 sales and price report.
The Nationwide Home Insurance Crisis Is About Far More Than Monthly Premiums Skyrocketing
Source: Realtor.com
Homeowners have gotten used to hearing bad news about insurance premiums. But a new nationwide analysis suggests rising prices are only part of the problem.
A first-of-its-kind report from the National Association of Insurance Commissioners (NAIC) found that insurer-initiated nonrenewal rates increased between 96% and 216% from 2018 to 2024, depending on the region. In 2024 alone, insurers initiated more than 2 million nonrenewals nationwide.
Affordable Housing Concerns Unite Older Americans Across Party Lines
Source: AARP
Housing affordability is a pressing concern for Americans 50 and older. Nearly 9 in 10 (87%) say the lack of affordable housing nationwide is a significant problem, including a majority who view it as a very significant problem. Concern is equally strong closer to home: 86% say housing costs in their community are too high, with half (51%) saying they are much too high.
Importantly, these concerns cross political lines. Large majorities of Republicans (83%), Democrats (95%), and Independents (76%) agree that the shortage of affordable housing is a significant problem.
Weekly Mortgage Demand Stalls Along With Interest Rates, But Rates Are Now Moving Higher Again
Source: CNBC
Mortgage rates didn’t budge last week, leaving little incentive for either homebuyers or current homeowners to call their lenders.
Total mortgage application volume was essentially flat from the previous week, down 0.4%, according to the Mortgage Bankers Association’s seasonally adjusted index.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances, $832,750 or less, remained unchanged at 6.77%, with points decreasing to 0.65 from 0.67, including the origination fee, for loans with a 20% down payment.
