Foreclosures Rise Across California As Pressure Builds
California’s housing market enters September with more caution than momentum. Foreclosure activity ticked higher in July, a reminder that elevated borrowing costs are still squeezing some homeowners, while statewide home sales pulled back and the median price slipped for a second straight month. Nationally, new listings climbed to a four-month high just as buyer demand cooled, tipping more markets toward buyers even as mortgage rates hovered in the mid-6% range. Mortgage application volume slid again, with refinancing activity down sharply from a year ago. The result is a market giving patient buyers real leverage, even as it tests sellers’ pricing discipline and stretches distressed owners further.
In The News:
ATTOM Data Solutions — July 2026 U.S. Foreclosure Market Report (August 27, 2026) — Foreclosure filings rose 10% year-over-year to 39,906 properties nationally in July, with completed foreclosures up 23% to 4,764. California ranked third in foreclosure starts with 2,540 filings and second in completed foreclosures with 616, trailing only Texas. Vallejo posted the fourth-worst metro rate in the country. ATTOM CEO Rob Barber said financial pressures remain a factor for some homeowners, though activity stays low by historical standards.
California Association of Realtors — California Homebuyers Gain Leverage As Sales Slow (August 29, 2026) — Statewide existing-home sales fell 6% from June to a seasonally adjusted annual rate of 263,170 in July, and the median price slipped 1.9% to $887,680, dipping below $900,000. Unsold inventory rose to 3.4 months of supply from 3.1 in June, and pending sales dropped 6.8%, giving buyers more room to negotiate even as active listings stayed 9.3% below year-ago levels.
Redfin — New Listings Hit 4-Month High While Demand Slips (August 27, 2026) — New listings rose to their highest level since April during the four weeks ending August 23, even as pending sales fell to a six-month low and months of supply climbed to 3.8. In San Jose, new listings jumped 13.3% year-over-year while the median price eased. Redfin’s Chen Zhao said buyers have a window to close a deal before demand potentially rebounds after Labor Day.
Freddie Mac — Primary Mortgage Market Survey (August 27, 2026) — The 30-year fixed mortgage averaged 6.66% for the week ending August 27, barely changed from the prior week, while the 15-year fixed rose to 5.98%. Freddie Mac said the economy remains resilient thanks to steady consumer spending and rising household incomes, and that more homes coming onto the market alongside slower price growth are helping create a more balanced housing market.
Mortgage Bankers Association — Mortgage Applications Decrease in Latest MBA Weekly Survey (August 26, 2026) — Total mortgage application volume fell 1% for the week ending August 21 as the average 30-year rate edged up to 6.78%, a three-week high. The seasonally adjusted purchase index slipped 0.3%, while refinance applications dropped 2% for the week and sat 17% below year-ago levels, signaling most of this summer’s refinance wave has already run its course.
