California Home Sales Climb Despite Rising Mortgage Rates

California’s housing market found its footing in August, with statewide sales and prices both ticking higher even as mortgage rates crept back toward 7 percent. Sales activity is up from a year ago for the first time in months, though buyer demand remains uneven nationally: pending sales slipped to a near three-year low even as the West region posted a rare monthly gain. Locally, Southern California’s harbor and inland communities are still adjusting to a much smaller pool of transactions than before the pandemic, a reminder that low-rate lock-in continues to hold inventory off the market. Investors and buyers with flexible capital remain well positioned as constrained sellers work through the gap between list prices and what today’s rates allow.

In The News:

C.A.R. — California Home Sales And Prices Rise In August Despite Higher Mortgage Rates, Housing Costs (September 16, 2026) — Statewide closed sales of existing single-family homes rose to a seasonally adjusted annualized rate of 269,620 in August, up 2.4 percent from July and 1.4 percent from a year earlier. The median price reached $901,420, up 1.6 percent month over month. C.A.R. President Tamara Suminski said buyers stayed engaged despite elevated borrowing costs, though Chief Economist Jordan Levine warned further Fed tightening could keep rates elevated into fall.

Redfin — Pending Home Sales Dip To Lowest Level In Nearly Three Years (September 17, 2026) — Nationwide pending home sales fell 3.5 percent week over week and 5.4 percent year over year in the four weeks ending September 13, the slowest pace in nearly three years. California metros diverged sharply: San Francisco median sale prices jumped 10.2 percent year over year as new listings fell, while San Jose prices dropped 5 percent as new listings rose nearly 14 percent.

NAR — NAR Pending Home Sales Report Shows 0.3% Increase In August (September 17, 2026) — The National Association of Realtors’ Pending Home Sales Index rose 0.3 percent in August, though it remained down 4.7 percent from a year earlier. The West region outperformed, climbing 3.0 percent for the month despite an annual decline of 6.7 percent. Chief Economist Lawrence Yun said buyers steadily entered contracts in August even as mortgage rates increased.

Bloomberg — US Mortgage Rates Rise For Fourth Straight Week, Approaching 7% (September 17, 2026) — The average 30-year fixed mortgage rate climbed for a fourth consecutive week, edging closer to 7 percent and marking its highest level in about a year. Mortgage applications to purchase a home fell sharply from a year earlier, while refinance activity plunged even further as rising borrowing costs squeeze affordability.

Random Lengths News — Home Sales Volume Shrinking (September 15, 2026) — South Bay Los Angeles home sales fell 12 percent month over month in August, with the Harbor area down 15 percent from a year earlier and overall volume off 18 percent from pre-pandemic levels. Median prices sit roughly 45 percent above 2019 levels, with the report tying the listing shortage to homeowners holding onto sub-3-percent mortgages rather than trading up into today’s 7-percent loans.