Mortgage Rates Ease Below 7.25%
California’s housing market caught a bit of breathing room this week as mortgage rates eased back below 7.25%, the lowest level buyers have seen in over a month. Still, real softness persists: statewide home sales fell for a second straight month in September, and national price growth is cooling toward its slowest pace in years. Affordability remains the core constraint — a typical California buyer still needs nearly $181,000 in income to qualify for a median-priced home. Beneath those headlines, conditions vary sharply by block, from rising contract cancellations in the Inland Empire to a sudden spike in price cuts across the East Bay.
In The News:
The Mortgage Reports — Mortgage Rates Ease in Freddie Mac's Weekly Average (November 3, 2026) — Freddie Mac’s latest Primary Mortgage Market Survey put the 30-year fixed rate at 7.24%, down 8 basis points from 7.32% the week before, as the 10-year Treasury yield eased alongside it. The 15-year fixed and 5/1 ARM also ticked lower, part of a broader pullback from highs above 7.5% a month earlier. The move gives California buyers a modest reprieve, though borrowing costs remain historically elevated heading into the holidays.
Cotality — US Home Price Insights — November 2026 (November 3, 2026) — Cotality’s (formerly CoreLogic) latest home price index showed national prices up just 1.7% year over year in September, the smallest annual gain in years, with a 0.3% monthly dip. Chief economist Selma Hepp warned elevated mortgage rates will keep limiting home buying into 2027. The report singled out California’s affordability squeeze, noting a buyer needs roughly $180,900 in annual income to qualify for the state’s $754,500 median-priced home.
C.A.R. — California home sales pull back in September as higher borrowing costs and affordability challenges constrain buyer demand (October 19, 2026) — The California Association of Realtors reported statewide home sales fell 6.5% year over year in September to a seasonally adjusted annualized rate of 260,410 units, with the median price essentially flat at $899,720. The 30-year fixed rate averaged 6.86% during the month, up sharply from 6.35% a year earlier. Unsold inventory held at 3.7 months, while homes sold slightly faster, in a median 29 days versus 32 a year ago.
Patch — California Housing Market Sees A Surprising Shift In Buyer Behavior (October 17, 2026) — Citing Redfin data, Patch reported California contract cancellation rates ranging from just 2.8% in San Francisco to 17.4% in Riverside, compared with 14.5% nationally, as buyers grew warier mid-contract. Pending sales dropped across Southern California metros — Los Angeles fell 16%, San Diego 15.8%, Anaheim 15.5% — while mortgage rates touched a three-year high near 7.28%. Nearly one in five sellers cut their price.
HousingWire — Why a spike in price cuts doesn't always signal a housing market shift (October 28, 2026) — HousingWire’s look at Contra Costa County showed how much conditions can vary within a single market: in Oakley, the share of listings with price cuts jumped from 36.3% to 55.4% in just three weeks, and median days on market rose from 49 to 70. Neighboring Brentwood looked calmer, with cuts up a more modest 6 points year over year — a reminder that county-wide averages can mask sharp local swings investors should watch closely.
