Following the fall of the Ashikaga shogunate, which was based in Kyoto, control of the city, and thus ostensibly the country, fell into the hands of the Hosokawa clan (who held the post of Kyoto Kanrei – Shōgun's deputy in Kyoto) for a few generations.

Katsumoto's son, Hosokawa Masamoto, held power in this way at the end of the 15th century, but was assassinated by Kōzai Motonaga and Yakushiji Nagatada in 1507. After his death, the clan became divided and was weakened by internecine fighting. What power they still had, however, was centered in and around Kyoto. This gave them the leverage to consolidate their power to some extent, and came to be strong rivals with the Ōuchi clan, both politically, and in terms of dominating trade with China.