What Shifting Mortgage Markets Mean for Your Home Purchase

Non-agency mortgage-backed securities issuance dipped in Q2 2026, but the market remains active — and understanding these trends can help California buyers and investors make smarter financing decisions.

The mortgage market saw a pullback in non-agency mortgage-backed securities (MBS) issuance during the second quarter of 2026, with total volume dropping roughly 15% from the prior quarter's record high. While that sounds like a red flag, the details tell a more nuanced story.

The decline was largely driven by a slowdown in older, seasoned loan activity — not in newly originated loans. In fact, new loan issuance only slipped about 5%, showing that lenders are still actively funding purchase and refinance transactions. The market hasn't stalled — it's simply normalizing after an unusually strong start to the year.

For California homebuyers and investors, this matters because the non-agency market is where many jumbo loans, investor loans, and non-traditional financing products live. When this market stays active, you have more financing options at potentially competitive rates.

On the lending infrastructure side, warehouse lending — the behind-the-scenes funding that allows mortgage companies to originate loans — is actually growing, with some banks reporting year-over-year balance increases of over 36%. A well-funded lending pipeline means mortgage companies can keep putting money to work for borrowers like you.

Bottom line: the fundamentals supporting mortgage availability in California remain solid. Whether you're buying a primary home, a rental property, or refinancing, now is a good time to review your options. Reach out to us today and let's find the best loan for your goals.