The average long-term U.S. mortgage rate edged lower after rising the previous two weeks.
The benchmark 30-year fixed rate mortgage rate fell to 6.36% from 6.37% last week, mortgage buyer Freddie Mac said Thursday. One year ago, the rate averaged 6.81%
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also eased this week. That average rate fell to 5.71% from 5.72% last week. A year ago, it was at 5.92%, Freddie Mac said.
Mortgage rates are influenced by several factors, from the Federal Reserve’s interest rate policy decisions to bond market investors’ expectations for the economy and inflation.
As recently as late February, the average rate on a 30-year mortgage had slipped just under 6% for the first time since late 2022. It’s hasn’t fallen below that threshold since.
Mortgage rates have been mostly trending higher since the war with Iran began. The closure of the Strait of Hormuz has roiled energy markets, sending crude oil prices sharply higher — a key driver of inflation.
Expectations of higher oil prices have pushed up the yield on the U.S. 10-year Treasury note, which which lenders use as a guide to pricing home loans.
The 10-year Treasury yield was at 4.44% in midday trading Thursday on the bond market. The yield was at just 3.97% in late February, before the war broke out.
While average long-term mortgage rates remain lower than they were at this time last year, their recent increase has helped dampen sales so far this spring homebuying season.
“This is part of the reason why home sales have been stagnant so far in 2026, notching only marginal improvements over the 30-year low of the 2025 housing market,” said Joel Berner, senior economist at Realtor.com.
Sales of previously occupied U.S. homes were essentially flat last month after declining from a year earlier in the first three months of the year, extending a nationwide housing slump that dates back to 2022 when mortgage rates began to climb from pandemic-era lows.
Despite lackluster sales, there are signs that some home shoppers are adapting to where mortgage rates are now.
California Home Sales Rise From Year-Ago as Median Home Price Breaks a New Record in May
SACRAMENTO (June 17) – California home sales increased from the previous year in May for the second consecutive month, while a shift in sales of higher-priced properties buoyed California’s median home price to another historic high as housing supply tightens, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.
Infographic: https://www.car.org/Global/Infographics/2026-05-Sales-and-Price With home sales increasing at a year-over-year growth pace of 5.1 percent to a seasonally adjusted annualized rate of 268,810 homes, the California housing market experienced the strongest annual gain in eight months, according to data collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide. On a month-over-month basis, home sales dipped 3.1 percent from April’s upwardly revised 277,360 units. The statewide annualized sales figure represents what would be the total number of homes sold during 2026 if sales maintained the May pace throughout the year. It is adjusted to account for seasonal factors that typically influence home sales.
May’s statewide sales remained below the 300,000-unit benchmark for the 44th consecutive month. Despite the month-to-month pullback, May’s stronger-than-expected performance pushed sales up 1.2 percent through the first five months of 2026, an indication that homebuying activity has picked up as geopolitical tensions showed signs of easing in recent weeks.
“California’s home sales softened in May as broader economic uncertainty continued to weigh on consumer confidence and homebuying sentiment,” said C.A.R. President Tamara Suminski, a Southern California broker and REALTOR®. “Even so, the recent easing in mortgage rates is an encouraging development, and if that trend continues, it could help bring more buyers and sellers back into the market and support a gradual improvement in housing conditions beginning in the third quarter.”
Driven by continued sales gains in the higher-priced segment, California’s median home price reached a new record high of $930,260 in May. The home price rose 2.3 percent from April’s downwardly revised price of $909,410. The monthly gain was more than double the historical average typically observed between April and May over the past 30 years. The median price climbed 3.1 percent year over year, marking the strongest annual gain since March 2025. The increase was enough to push the statewide median above $900,000 for the second time in 2026.
A record share of million-dollar home sales in May continued to shift the statewide sales mix toward higher-priced properties. Sales of homes priced between $1 million and $2 million surged 8.2 percent from a year earlier, while sales above $2 million soared 8.5 percent. By comparison, sales in the $500,000 to $1 million range declined 3.4 percent, underscoring the affordability challenges facing middle-income buyers. Strong equity market performance over the past two months supported higher-end housing demand. The growing concentration of activity in the higher-end segment was also reflected in the share of million-dollar home sales, which reached a record-high 38.5 percent of all transactions. “Housing supply has remained constrained in recent months as the lock-in effect continued to put many would-be sellers on the sidelines, intensifying competition and placing upward pressure on home prices,” said C.A.R. Senior Vice President and Chief Economist Jordan Levine. “While the statewide median price typically reaches its seasonal peak in May, the recent easing of tensions in the Middle East could bring more buyers back into the market and keep price pressures up at the start of the third quarter.”
Other key points from C.A.R.’s May 2026 resale housing report include:
Note: The County MLS median price and sales data in the tables are generated from a survey of more than 90 associations of REALTORS® throughout the state and represent statistics of existing single-family detached homes only. County sales data is not adjusted to account for seasonal factors that can influence home sales. Movements in sales prices should not be interpreted as changes in the cost of a standard home. The median price is where half sold for more and half sold for less; medians are more typical than average prices, which are skewed by a relatively small share of transactions at either the lower end or the upper end. Median prices can be influenced by changes in cost, as well as changes in the characteristics and the size of homes sold. The change in median prices should not be construed as actual price changes in specific homes.
*Sales-to-list-price ratio is an indicator that reflects the negotiation power of home buyers and home sellers under current market conditions. The ratio is calculated by dividing the final sales price of a property by its original list price and is expressed as a percentage. A sales-to-list ratio with 100 percent or above suggests that the property sold for more than the list price, and a ratio below 100 percent indicates that the price sold below the asking price.
**Price per square foot is a measure commonly used by real estate agents and brokers to determine how much a square foot of space a buyer will pay for a property. It is calculated as the sale price of the home divided by the number of finished square feet. C.A.R. currently tracks price-per-square foot statistics for 53 counties.
Home to Crater Lake National Park, the Columbia River Gorge, and the stunning Oregon Coast, the Beaver State has a wealth of incredible natural beauty and recreation areas that make it a standout place to live. Together with Oregon’s healthy job market (which is expected to grow by 8 percent between 2023 and 2033), its higher education institutions, and a generally relaxed, eco-conscious reputation, the state has a roster of charming towns and vibrant cities that appeal to people looking to relocate.
While the housing market in Oregon is competitive—Zillow estimates the average home value is just under $500,000—there are several places that Oregon-based real estate agents and experts recommend for prospective home buyers and renters. Below, find their picks for 10 of the best places to live in Oregon.
If you’re looking for affordability, charm, access to the Blue Mountains, and a strong sense of community, Kenzie Carlstrom of RE/MAX Key Properties in Bend recommends La Grande. She calls it a “hidden gem” in Eastern Oregon, and says its historic district is particularly popular, thanks to its “classic homes with character and larger lots.” The average home value in La Grande is $277,988, and, given the fact that it’s home to Eastern Oregon University, Carlstrom says it’s ideal for anyone looking to invest in rental properties.
“La Grande is an appealing option for those seeking a slower pace of life, stunning natural surroundings, and lower home prices than many other Oregon cities,” she says. “Plus, it’s the easiest four-hour drive to Portland; hop on I-84, and that’s it for your weekend city fix.”
It’s not hard to understand why Bend has a competitive housing market; Jen Dillard, CEO and founder of the JDRE Team affiliated with Real Broker, calls it a “paradise for outdoor enthusiasts, offering year-round recreation from skiing at Mt. Bachelor to hiking, biking, and paddling down the Deschutes River.” Carlstrom adds that Bend has recently experienced a “strong demand for single-family homes,” which she credits to “remote work trends, the local biotech industry, and the city’s vibrant craft beer scene,” as well as its “excellent schools and year-round recreation.”
Dillard says that prices have “cooled slightly from pandemic highs,” but inventory remains on the lower end. Per Zillow, the average home price in Bend is over $733,000. Still, if you can find a home within your budget, you’ll enjoy all the adventure and modern amenities, including riverfront restaurants and live music venues, that Bend has to offer.
Anyone envisioning a classic Pacific Northwest lifestyle without the high prices associated with Portland should have Salem on their shortlist. While the capital of Oregon has a somewhat competitive housing market, Zillow records the average home value as $428,744—19 percent lower than Portland’s.
Whether you’re buying or renting, Salem is the type of place where there’s always something to do. The historic Elsinore Theatre hosts live music, comedy, and theater performances, and the Hallie Ford Museum of Art, which is part of Willamette University, has a series of rotating and permanent exhibitions to explore. And if you prefer to spend your free time outside? You’ll have your pick of nearby trails for biking, running, or walking.
There’s a high chance that oenophiles looking to invest in real estate will be swayed by this next statement. “Newberg is the gateway to wine country, and I liken it to buying real estate in Sonoma or Napa 50 years ago,” says Shannon Janssen, a Coldwell Banker Global Luxury Property Specialist and real estate broker affiliated with the Portland office of Coldwell Banker Bain. “The topography is stunning with a mix of rolling hills, farmlands, and vineyards, and the town itself has a quaint little downtown with excellent restaurants and a variety of tasting rooms.”
Located just south of Portland, Newberg is a more affordable option for those who want to be within driving distance of Oregon’s most populous city. According to Janssen, buyers are usually “able to find starter homes under $500,000,” and, simultaneously, Newberg “offers the kind of large acreage view properties that luxury buyers are looking for.”
“Nestled in the Columbia River Gorge, Hood River and the Hood River Valley is a paradise for outdoor enthusiasts, windsurfers, hikers, and wine drinkers, and it, hands down, has the most picturesque landscapes,” says Carlstrom. Unfortunately, though, she says Hood River’s appeal and its “small-town, close-knit community” have created a tight real estate market, largely driven by high demand for second homes. But, she says, the town’s “farm-to-table scene, craft breweries, and easy access to Portland” still make it a top place to live in the state.
Dillard echoes her sentiment, sharing that there are also great schools and a lovely downtown lined with boutique shops, cafes, and restaurants. She says the most desired homes are typically found in downtown Hood River, the Westside of Hood River, and The Heights area—and you can expect to pay a pretty penny. Home prices in Hood River continue to increase; as of March 2025, the average home value is $694,592.
If you’re thinking about relocating to a suburb of Portland, consider Cedar Mill. “It’s closer to downtown Portland than any other suburb in Washington County, yet it feels like a different universe since the two are separated by Forest Park,” says Janssen. “It’s friendly, safe, unpretentious, and has a small-town feel with a weekly farmers market, its own library, and numerous locally owned businesses.”
Its list of green flags continues with relatively low property taxes (Oregon property taxes are capped at 1.5 percent) and highly rated schools. That said, she explains that home values have seen “consistent and steady growth for years and are about 53 percent higher than the greater Portland Metro average.” Zillow estimates the average home value in Cedar Mill is currently just over $835,000.
Living in a big city isn’t for everyone; some prefer to live where they can prioritize spending time outdoors, preferably by a river. If that rings true for you, Kristen Butz, principal broker at Sunriver Realty, suggests checking out Three Rivers, an area named after the three rivers that flow through it. “Three Rivers is located south of Bend??, southwest of Sunriver, and north of La Pine. The community comprises a diverse group of neighborhoods with varying price ranges,” she explains. Three Rivers is technically an unincorporated area, so you may find that you need to drive into Bend or a larger city for some things, but you don’t need to go far to enjoy the natural beauty this part of Oregon is known for. “From bird watching and boating to neighborhood gatherings, Three Rivers is a wonderful place to call home,” Butz adds.
There are both pros and cons to moving to Portland, but for some, the positives may outweigh the high cost of living, traffic, and crime rates. After all, it is one of the greenest cities in the U.S., it attracts a vibrant, creative community, and the job market is home to major employers including Nike, Adidas North America, and Columbia Sportswear. Additionally, the access to all kinds of outdoor recreation—rivers, beaches, and mountains—is hard to beat.
Granted, the real estate inventory tends to run low, and the average home value in the city is $531,463. While those looking to invest in real estate may have to be patient, renting is also an option. With average rent estimated to be $1,700, Portland is a solid choice for anyone who wants a mix of city amenities and a relaxed, outdoorsy lifestyle.
“The epicenter of the ‘Silicon Forest,’ Hillsboro has a lot more to offer than most realize and isn’t just about working at Intel,” says Janssen. Located on the west side of the Portland Metro area in the Tualatin Valley, Hillsboro has a strong job market; several large companies—including Applied Materials, Epson, and Thermo Fisher Scientific—join Intel in calling the city their home.
The average home value in Hillsboro comes in around $538,00, and Janssen specifically recommends looking at the Orenco Station neighborhood. She nods to its local farmers market, restaurants, shops, and access to the light rail system, and says that its “abundance of small to midsize townhomes and condos that cater to a low-maintenance, car-free, and carefree lifestyle” tend to appeal to both first-time home buyers and retirees.
This week, California Gov. Gavin Newsom signed into law a sweeping set of housing and infrastructure reforms as part of California's 2025-2026 state budget, delivering the state's biggest environmental review and permitting rollbacks in decades, the governor's office said.
The move — via Assembly Bill 130 and Senate Bill 131 — overhauls the state's environmental law, the California Environmental Quality Act (CEQA), and expands other housing-related acts in an effort to reduce the barriers, timelines and costs of new housing across the state.
What the new changes mean: In addition to infrastructure, the new law focuses on infill development, which is desperately needed in California — a state that was already facing a dire housing crisis even before the historic wildfires that destroyed thousands of homes earlier this year.
An important provision of the landmark reform is the exemption of local rezoning efforts from CEQA review for infill housing in areas that are already prepared or well-suited for development and housing. However, protections for natural and protected "sensitive lands" will be maintained.
The new effort also freezes residential building standards through 2031, which will help provide consistency and predictability for new home builders and developers in the immediate future.
What supporters said: "No longer will CEQA be leveraged to stall critical county wildfire, water and housing projects. This legislation will make California more affordable for families by helping to alleviate our housing crisis and, in turn, reducing homelessness," California State Association of Counties President and Inyo County Supervisor Jeff Griffiths said in the announcement.
"This is one of the biggest wins for housing in a generation," said Brian Hanlon, CEO of California YIMBY — a special interest group that is part of a larger national effort to tackle restrictive local zoning and push a housing "abundance" agenda. The legislation "makes it crystal clear: building infill housing is not a threat to the environment — it's how we save it." Are environmental regulations taking too much blame? California's Planning and Conservation League and its PCL Foundation, which were involved in the original effort to draft and pass CEQA in the early 1970s, suggest that environmental review and regulations are being "unfairly scapegoated."
Infill "is a complex issue, with many factors combining to limit our ability to rethink and rebuild California's urban cores," the group wrote in a blog post. "Moreover, based on the evidence we do have, it appears that CEQA receives a disproportionate share of blame and attention when it comes to infill."
In the wake of the devastating Eaton and Palisades wildfires, some economic and housing experts told Real Estate News that environmental protections should be the top consideration for rebuilding — and questioned whether some areas should be rebuilt at all.
"We need to allow nature to regenerate and rejuvenate the environment," Seydina Fall, a senior finance lecturer at Johns Hopkins Carey School of Business, told Real Estate News in January. "I mean, to me, it's just very obvious what's happening — it's nature rebelling against us. We maxed out the credit card."
FICO has unveiled a new credit analysis tool for mortgage professionals as it comes under scrutiny over potential price increases.
The FICO Score Mortgage Simulator allows lenders to see potential impacts on a borrower’s credit score through various simulated changes in their report data.
Changes like reduced credit card debt, paying off a loan, or deleting a collection account can be applied to produce the likely outcome on a borrower’s score. This way, brokers and lenders can help borrowers gauge what actions would help open up more loan options and better rates.
FICO says it will ultimately help more people qualify for mortgages, with the best product and best rates available to them.
“FICO is continuously working on innovative product offerings that can responsibly expand credit access to more people,” said Geoff Smith, VP and general manager of Consumer Scores at FICO. “Even a few additional points in a potential borrower’s FICO Score can have a material impact on the mortgage loan terms offered. Ultimately, the FICO Score Mortgage Simulator will prove to be a powerful tool that can enable more people to achieve the dream of homeownership.”
It is the only score simulator that uses FICO scores and the actual FICO algorithm. Verification fintech Xactus is the first company to bring this product to the market.
“The FICO Score Mortgage Simulator is an innovative new tool, and we are thrilled to be at the forefront of bringing it to the mortgage market. This tool brings a unique opportunity to allow both lenders and consumers to not only have a deeper understanding of FICO Score dynamics but provide a better experience and return for everyone,” said Shelley Leonard, President of Xactus.
FICO is a leading analytics software company best known for credit scoring. It’s recently come under fire for jacking prices, however. The industry has reacted strongly to rumors that the company will raise the price of a credit score from $3.50 to at least $5 next year.
A group of Congressional lawmakers sent a letter to President Joe Biden urging an investigation as to whether the company constitutes a monopoly, violating anti-trust laws.
FICO isn’t the only game in town for credit scoring, however. FormFree released the Residual Income Knowledge Index (RIKI), its alternative to the traditional credit score model, in October 2021.
RIKI uses bank and credit card statements procured directly from financial institutions to give lenders an understanding of a borrower’s discretionary funds after mandatory monthly expenses.
“What RIKI does is it looks at all the transactions, income and expenses, calculates income, identifies if it is consistent monthly income or if it is a one-off transfer, and then the lender can see that,” FormFree’s Chief Customer Officer Christy Moss told The Mortgage Note.
HousingWire recently highlighted RIKI as an example of an open banking framework that could transform the industry.