Newsom Signs New Housing Finance Laws

California's housing market is threading a needle heading into fall: policymakers are moving to unlock new financing and streamline stalled projects even as borrowing costs stay elevated. Governor Newsom signed fresh housing-finance legislation this week, existing-home sales and prices both climbed in August, and single-family construction posted a surprise rebound — encouraging signs of a market finding its footing. Mortgage rates, though, remain stuck above 7%, and long-stalled CEQA litigation reform is still awaiting the Governor's signature, a reminder that supply-side relief will take time to show up in listings.

In The News:

Governor of California — Governor Newsom Issues Legislative Update 9.20.2026 (September 20, 2026) — Newsom signed SB 802, creating the Sacramento Regional Housing and Homelessness Joint Powers Authority to coordinate regional housing and homelessness funding, and AB 2110, the Workforce Housing Enhanced Infrastructure Financing Act, which gives cities a new financing tool to fund infrastructure tied to workforce housing development.

C.A.R. — California home sales and prices rise in August despite higher mortgage rates, housing costs (September 16, 2026) — Statewide existing single-family home sales rose 2.4% from July to a seasonally adjusted annualized rate of 269,620 units, while the median price climbed 1.6% to $901,420. Homes sold in a median of 28 days, down from 31 a year earlier, as buyers stayed engaged despite a 6.67% average 30-year rate.

Yahoo Finance — Mortgage and refinance rates today, Tuesday, September 22, 2026 (September 22, 2026) — The 30-year fixed rate edged down to 7.03% and the 15-year fixed fell to 6.50%, per Zillow lender data, as all major mortgage products ticked lower. Even so, the 30-year benchmark remains above the 7% mark it crossed earlier this month, with forecasters still projecting a retreat toward 6.7%-6.8% by year-end.

MortgagePoint — Single-Family Housing Starts Rebound in August, But Is It Temporary? (September 17, 2026) — Single-family housing starts jumped 7.6% in August to a seasonally adjusted annual rate of 918,000 units, up 5.2% year-over-year, per Census Bureau data. Single-family permits fell 1.8%, though, suggesting the pickup in construction activity may not carry into the fall building season.

HousingWire — Lawsuit fallout could shrink California CEQA barriers to housing (September 9, 2026) — Two bills on Newsom's desk, SB 344 and SB 958, would curb CEQA litigation that has delayed San Diego's $4 billion Midway Rising project and its 4,250 planned housing units, including 2,000 affordable homes. Newsom has until September 30 to sign, veto, or let the measures take effect.