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May 28, 2026
- May 28
- 5 min read
Post-wildfire rebuilding could accelerate modular and prefab housing adoption in California
KHTS
January 2025’s record wildfires exacerbated existing housing shortages. But some experts see the emergence of prefabricated buildings in the wake of the Eaton and Palisades fires as the greatest change in the field of construction in the last ten years, as investors and homeowners look to add ADUs or create faster housing solutions on existing lots.
With forgiving fire-resistant, termite-resistant and energy-efficient materials, prefab houses can be superior to traditional stick-built homes, as they can better withstand extreme conditions. Many homes today can withstand hailstorms, heavy snow, Category 5 hurricanes, earthquakes and, of course, fire. Modular homes are also faster to build. A 2023 study reports that prefab housing can reduce construction timelines by up to 50 percent through off-site construction, thereby decreasing costs by approximately 20 percent. As a result, the prefab housing market has taken off. In an effort to speed up rebuilding, Governor Newsom announced additional funding in February 2026 to help survivors access prefab housing.
Wells Fargo to offer mortgage incentives on 3D printed homes with Icon
CNBC
In the race to build housing more efficiently and affordably, 3D printing is becoming increasingly viable and popular. Financing for the homes is still a significant hurdle. However, that may soon change.
Wells Fargo, one of the nation’s largest mortgage lenders, in conjunction with Icon, the biggest player in the 3D construction space, is announcing that it will write mortgages on homes built with Icon technology and also offer an incentive to buyers. Wells Fargo will provide a 50 basis point lender credit to buyers of Icon homes using its mortgages. Historically, 3D printed homes had difficulty getting traditional mortgage financing. Lenders had concerns over the viability of the technology, the potential value appreciation of the homes, and the ability to both sell and insure the loans, but that appears to be fading. Having one of the big banks back these homes is a milestone for 3D printed houses.
Narrower 'service animal' rules could trigger evictions in states outside of California
Blavity
The Department of Housing and Urban Development (HUD) plans to update its policy concerning federal requirements that landlords accept tenants with disabilities having service animals or emotional support animals in otherwise animal-free properties. Under the new regulations described in a memo issued by HUD, emotional support animals would no longer qualify for exemptions in animal-free residences. Landlords would still be required to accept service animals, but the requirements for an animal qualifying as a service animals would be made stricter. This change will not affect California.
The changes represent a narrowing of enforcement of a provision of the Fair Housing Act that exempts “assistance animals” from being excluded from no-pet buildings or subject to pet fees from landlords. Note, however, that some states have legal protections above and beyond federal regulations, including California. Nothing about California law or fair housing regulations have changed, and REALTORS® and housing providers still need to follow California's rules regarding support animals. For more information, go to on.car.org/emotsuppanimals.
FHA keeps tri-merge credit reports while expanding approved scoring models
National Mortgage Professional
The U.S. Federal Housing Administration (FHA) will continue requiring lenders to use three-bureau credit reports (from Equifax, Experian and Transunion) for single-family mortgage loans, even as the agency adopts newer scoring models aimed at increasing competition and modernizing mortgage underwriting.
The announcement comes weeks after HUD and the FHA jointly unveiled plans to allow both FICO 10T and VantageScore 4.0 to be used alongside the longstanding Classic FICO model for FHA-insured loans. The guidance follows a long-standing argument that broader credit data improves mortgage risk management.
Luxury housing market surges while middle-market buyers stay sidelined
National Mortgage Professional
Luxury homebuyers are continuing to drive housing activity despite elevated mortgage rates, highlighting a growing divide between affluent borrowers and mainstream buyers still struggling with affordability pressures. Luxury homes are generally those among the top 10 percent of the local market; in California, that would range from $2 million in inland California to $4+ million in coastal hubs like Los Angeles and the Bay Area. New data from Redfin shows pending sales of luxury homes nationwide rose 4.3 percent year over year during the three months ending April 30 – the largest increase since January 2025. Non-luxury pending sales also rose, climbing 4 percent annually for the strongest gain since December 2024.
That data is another sign that whatever economic recovery is taking shape in housing is happening unevenly. Affluent borrowers with stock-market wealth, large down payments and cash reserves are continuing to transact, while many first-time and middle-income buyers remain sidelined by affordability pressures and elevated mortgage rates. The luxury market’s strength was especially pronounced in tech-heavy regions benefiting from the artificial intelligence boom. San Francisco posted the nation’s largest increase in luxury pending sales, surging 48.8 percent year over year in April. The city also posted a 17.7 percent increase in new luxury listings. The increase in luxury home sales has contributed to the rising median home price in California.
29% of U.S. homebuyers paid cash in March – the lowest share for that month since 2020
Redfin
Just under three in 10 (28.8 percent) U.S. homebuyers paid in all cash in March, down from 29.8 percent a year earlier. That’s tied with 2021 for the lowest March share since 2020. An all-cash purchase is one in which there is no mortgage loan information on the deed.
The prevalence of all-cash home purchases peaked at nearly 35 percent in 2023 because mortgage rates hit a two-decade high of almost 8 percent during that time. Buyers who could afford to were inclined to pay in cash to avoid sky-high monthly mortgage payments. Now, the share of homebuyers paying in cash is declining because market conditions have shifted. While mortgage rates remain elevated well above pre- and mid-pandemic levels, they eased to 6.18 percent in March from recent highs of 7 percent or above. For homebuyers, that reduces the incentive to avoid financing altogether by making all-cash purchases. At the same time, the housing market had many more sellers than buyers in most of the country, so that house hunters don’t need to use all-cash offers to stand out in bidding wars. Widespread economic uncertainty is also playing a role. Some buyers are opting to finance their purchase to keep cash on hand in case of emergency.
Mortgage refi demand drops 18% as rates hit highest level since August
CNBC
Mortgage rates continued their climb last week, making it harder for current homeowners to save on a refinance. Potential homebuyers also pulled back a bit, causing total mortgage application volume to drop 8.5 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 6.65 percent from 6.56 percent, with points rising to 0.65 from 0.60, including the origination fee, for loans with a 20 percent down payment. The 30-year fixed rate has climbed 30 basis points over the past five weeks to its highest level since August 2025. Applications to refinance a home took the hardest hit, with those applications down 18 percent for the week. They were still 19 percent higher than the same week one year ago. Applications for a mortgage to purchase a home fell 0.4 percent for the week and were just 5 percent higher than the same week one year ago. The average loan size for a purchase application reached another survey high at $473,600, as borrowers with smaller loan sizes were less active given the higher rate environment and its negative impact on their purchasing power, according to MBA VP and Chief Deputy Economist Joel Kan.
