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California Home Sales Plunge 21% as Soaring Mortgage Rates Hit

The pace of purchases in June was down the most since May 2020, when the pandemic lockdown was in full effect.

Homes in Hercules, California.

Homes in Hercules, California.

Photographer: David Paul Morris/Bloomberg

The pace of California home sales plunged 21% in June from a year earlier as soaring mortgage rates took a bite out of buyer interest, the state Realtors group reported Monday.

It was the biggest drop since California’s three-month pandemic lockdown in 2020, the California Association of Realtors said. If excluding the early Covid-19 lockdown, June’s sales were at the lowest level since April 2008, when a housing bubble was bursting after subprime mortgages dried up for borrowers with limited ability to repay their debts.