California home sales fall amid mortgage rate spike
Read more: Florida home sales dip as mortgage rate pressure mounts in Q3
Rates climb as buyer urgency fades
The 30-year fixed-rate mortgage averaged 6.86% in September, up from 6.67% in August and 51 basis points above the 6.35% average recorded in September 2025, according to C.A.R.’s calculations based on Freddie Mac’s Primary Mortgage Market Survey data.
The spike, which gained momentum from late August, has widened the qualifying gap for buyers at both the entry and move-up levels.
“Mortgage rates and affordability remain challenging, but with competition easing, well-prepared buyers may have more room to explore their options, negotiate and focus on finding the right home rather than simply hurrying to make an offer,” said Tamara Suminski, C.A.R. president and a Southern California broker and Realtor.
Joel Kan of the Mortgage Bankers Association says new home purchase applications fell to their lowest level in six years as rising borrowing costs weighed on buyers, particularly first-time purchasers relying on FHA financing. https://t.co/Pf7V8lz8zm
— Mortgage Professional America Magazine (@MPAMagazineUS) October 15, 2026
California’s statewide median home price edged down 0.2% from August to $899,720, a smaller monthly decline than the 1.8% historical average between those two months.
