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May 21, 2026
- 1 day ago
- 4 min read
California FAIR Plan raising rates 29%, on average, starting Oct. 15
Source: ABC 10
The California FAIR Plan — the state’s high-cost, bare-bones fire insurance of last resort — is raising rates 29 percent, on average, starting mid-October. The California Department of Insurance approved that increase just last month. That will be a sharp and expensive premium hike for some homeowners, but the Department says there’s good news to help balance this all out.
Starting October 15 — whenever after that someone’s policy is set to renew — customers will see an average 29 percent increase in their homeowners premium, meaning that some people will see an increase higher than that, and others, lower. Last year, the FAIR Plan asked for a 35.8 percent increase, but the department granted a lower 29 percent increase. The good news is that the state’s recent insurance reform is bringing insurance companies back to California. Twelve insurance companies are responsible for 85 percent of homeowners policies in the state, and of those, six have so far agreed to the Sustainable Insurance Strategy, including CSAA, Mercury, USAA and Farmers, among others. Travelers and AAA SoCal are reviewing rates, along with several other, smaller companies. The reform offers them rate-setting tools they’ve sought for years, in exchange for agreeing to write more policies in higher-wildfire-risk areas. Now is a good time to call insurance agents because you might have more options now.
California home prices hit a new record high
Source: Sacramento Bee
California has long been known for its high cost of living — and home prices across the state just “set a record high” according to the CALIFORNIA ASSOCIATION OF REALTORS®’ April Home Sales and Price Report. The statewide median home price hit a new record of $914,810 in April, approximately 3 percent higher than $889,190 in March. According to C.A.R. SVP and Chief Economist Jordan Levine, “the increase in the median price was driven in large part by the composition of sales, with a greater share of activity occurring in higher-priced segments of the market.”
The increase comes as the spring homebuying season continues to boost activity in the housing market. Existing home sales climbed to a seasonally adjusted annualized rate of 275,580 in April, up 3.9 percent from March and 4.1 percent compared to April 2025. The most affordable homes in the state can primarily be found in Northen California and the Central Valley. In Lassen County, the median home price is $285,000, and Siskiyou County’s median price was $315,000.
LA County to end ban on rent-gouging, 16 months after fires created rental market chaos
Source: LAist
Landlords in Los Angeles County will soon be allowed to raise rents by more than 10 percent from their baseline before the January 2025 fires. A vote by the county’s Board of Supervisors that could have extended a ban on post-fire price-gouging for another month failed on Tuesday. As a result, the long-standing countywide prohibition on rent-gouging will expire May 29.
The milestone comes more than 16 months after the L.A. County fires destroyed thousands of homes and plunged families into a hectic rental market. The rent-gouging ban prohibited landlords from raising rents by more than 10 percent from advertised pre-fire levels. They also prohibited rents exceeding 200 percent of fair market value, as established by the U.S. Department of Housing and Urban Development, on previously unlisted properties. In March, the county ended post-fire price-gouging restrictions on hotels because survey data found that few displaced families were still staying in temporary motel rooms.
Wildfire forces evacuation of 10,000 homes in Southern California
Source: Realtor.com
Over 20,000 people were forced to evacuate their homes in suburban Los Angeles as massive wildfires that ignited Monday and Tuesday continued raging in Southern California. Some 900 firefighters battled the fast-moving Sandy Fire as it raged in Ventura County, damaging at least one home in the area. More than 10,000 homes were in the mandatory evacuation zone. Fire crews are prioritizing structure defense and building containment lines, according to an update from the Ventura County Fire Department.
In addition, firefighters are working to contain the Bain Fire and Verona Fire in Riverside County, as well as the Santa Rosa Island Fire in Santa Barbara County, which was likely sparked by a flare fired by a shipwrecked sailor seeking help. Weather conditions are taking a turn, as a cooling trend began on Thursday. Onshore air flow has returned and is expected to strengthen into the weekend. By the weekend, temperatures will generally be within a few degrees of normal, and humidity should return.
Rising mortgage rates cause surge in demand for riskier loans
Source: CNBC
Mortgage rates continued to climb higher last week, dampening demand for loans from both current homeowners and potential homebuyers. They also pushed consumers to riskier loans that offer lower rates. Total mortgage application volume dropped 2.3 percent last week compared with the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.
The average contract interest rate on the 30-year fixed-rate mortgage with conforming loan balances ($832,750 or less) increased to 6.56 percent from 6.46 percent, with points decreasing to 0.60 from 0.63, including the origination fee, for loans with a 20 percent down payment. The adjustable-rate mortgage, or ARM, share of total applications rose to nearly 10 percent, the highest since October 2025. ARMs are considered riskier because their rates reset after a fixed period. The average rate on a five-year ARM last week was 5.76 percent. Applications for a mortgage to purchase a home rose 4 percent for the week and were 8 percent higher than the same week one year ago. Buyer demand stalled at the beginning of the spring housing market, which coincided with the start of the war with Iran. Applications to refinance a home fell 0.1 percent for the week and were 35 percent higher than the same week one year ago. Mortgage rates continued to rise this week, hitting the highest level since last July, according to a separate survey from Mortgage News Daily.
