California Housing Affordability Remains Unchanged in Q3 2026 as Lower Prices Offset Rising Mortgage Rates
California's housing affordability held steady in the third quarter of 2026, with 19% of households able to afford a median-priced single-family home. This stability comes as a slight decline in median home prices helped mitigate the impact of rising mortgage rates, which climbed to an effective 30-year fixed rate of 6.80%. The statewide median price for existing single-family homes fell 2.3% from the previous quarter to $894,630. While affordability has plateaued, the California Association of Realtors (C.A.R.) warns that persistent inflation and rising borrowing costs continue to constrain purchasing power. Looking ahead, seasonal trends suggest prices could soften further, potentially providing some relief to buyers if demand remains dampened by high interest rates.
Topics: California real estate market home prices housing affordability mortgage rates