US Home Prices Fall For First Time In 3 Years

The housing market crossed a notable threshold this week: the median U.S. home-sale price slipped year-over-year for the first time in three years, and pending sales fell to their lowest level on record as mid-7% mortgage rates keep buyers on the sidelines. Rates themselves eased slightly for a second straight week, and mortgage applications ticked up as some borrowers re-engaged. In California, affordability held steady near record lows even as prices softened in pockets, while voters head to the polls this week on a major housing bond. The overall picture is one of a market slowly rebalancing — more negotiating room for buyers, but still a steep climb for most California households.

In The News:

Redfin — U.S. Home-Sale Prices Just Fell for the First Time in 3 Years (October 29, 2026) — The median home-sale price fell to $389,601, down 0.1% annually, the first yearly decline in three years and a second straight week of drops. Pending sales fell 1.8% weekly to the lowest level since 2021 records began, while the median mortgage payment hit $2,786 at 7.32%. Active listings rose slightly to 1.5 million, pushing months of supply to a near-balanced 4.5; San Jose prices fell 4.9% as new listings there jumped nearly 18%.

California Association of Realtors — California housing affordability holds steady in third quarter 2026 (October 30, 2026) — Just 19% of California households could afford the $894,630 statewide median-priced home in Q3, unchanged from both the prior quarter and a year earlier. Qualifying required a $228,000 income and a $5,700 monthly payment — more than double the national average. Condo affordability ticked up to 31%; Lassen County remained most affordable at 61%, while Mono County stayed least affordable at just 8%.

Mortgage Bankers Association — Mortgage Applications Increase in Latest MBA Weekly Survey (October 28, 2026) — Mortgage applications rose 3.4% for the week ending October 23 as rates eased, with the refinance share slipping slightly to 38.9% of activity. The adjustable-rate share climbed to 11.3% as borrowers sought lower initial payments, and FHA applications ticked up to 16.6% — a sign some rate-sensitive buyers are testing the market again.

Norada Real Estate — Today's Mortgage Rates, November 1: 30-Year Fixed Drops 2 Basis Points This Week (November 1, 2026) — The 30-year fixed rate eased to 7.10% and the 15-year fixed to 6.45%, both down slightly for a second consecutive week. On a $400,000 loan, the 30-year payment dropped about $5 a month — modest relief, but a welcome change of direction after rates touched a three-year high last month.

CalMatters — There's a $11.25 billion housing bond on the ballot this November. Here's what you should know (October 16, 2026) — California voters decide this week on Proposition 1, an $11.25 billion general obligation bond funding roughly 40,000 rental units, veteran and low-income homebuyer assistance, and farmworker, student, and tribal housing. The measure would cost the state $500–600 million annually for about 25 years; supporters say it is a meaningful but insufficient dent in a shortfall topping 180,000 homeless Californians.