Posts from January 4th, 2026

Current mortgage interest rates in California

As of Sunday, January 04, 2026, current interest rates in California are 5.88% for a 30-year fixed mortgage and 5.25% for a 15-year fixed mortgage. 

Mortgage rates in California — and throughout the country — peaked near 8 percent in late 2023 and have decreased since, but not as quickly as many prospective homebuyers were hoping. While rates have fallen further in recent months due to economic uncertainty, experts expect them to remain between 6 and 7 percent for the rest of the year, settling closer to 6.5 percent as 2025 ends.

Refinance rates in California

Refinance rates are looking much more attractive these days, especially if you bought your home a few years ago, when rates were higher. According to property data provider ATTOM, the number of refinance loans in the Golden State increased by 1.3 percent year-over-year between August 2024 and August 2025. 

Refinancing now could help you lock in a lower rate, and if you have a large chunk of equity — either because you've owned for a long time or because your home value has increased — you may be able to benefit from a cash-out refinance. This lets you turn some of your home's equity into cash, which you can use for home improvements, education or other financial goals. Almost half of California homeowners are equity rich — that is, they own more than 50 percent of their homes — according to ATTOM. 

National mortgage rates by loan type

California housing market statistics and trends

While California is a notoriously expensive place to purchase a home, there are more affordable pockets of the state, and the median sale price only grew nominally in October (up 0.06 percent over last year at the same time). Homes are also remaining on the market a median of 10 days longer year-over-year in October, and the percentage of homes with price drops increased by 3 percent. So while California can still be a tough place to buy, there are positive signs. 

• Median home sales price, Sept. 2025: $744,000
• Median home value, Sept. 2025: $773,750
• Median down payment, Sept. 2025: $156,000
• Median days on market, Oct. 2025: 47
• Percentage of homes sold above list price, Oct. 2025: 33.8%
• Percentage of homes with price drops, Oct. 2025: 28.6%
• Homeownership rate, Q2 2025: 55.3%

Sources: Redfin, ATTOM, U.S. Census Bureau

No matter where you're looking to buy, don't just look at the list prices: Compare homeowners insurance options, too, since the state has struggled to keep major carriers in the wake of recent natural disasters.

Mortgage options in California

• California conventional mortgages: To qualify for a conventional mortgage, you'll generally need a credit score of at least 620 and a debt-to-income (DTI) ratio of no more than 43 percent. In many cases, you can find down payments as low as 3 percent — though if you put down less than 20 percent, you will need to pay for private mortgage insurance (PMI).  
• CalHFA: The California Housing Finance Agency (CalHFA) offers state residents access to mortgages, as well as smaller loans designed to help with down payment or closing costs. To get started, borrowers can contact a CalHFA-approved lender or preferred loan officer.
• California FHA loans: Home loans backed by the Federal Housing Administration (FHA) are offered throughout the U.S. While the FHA doesn't offer loans directly, you can find one through an FHA-approved lender in California. FHA loans are generally designed for low- to moderate-income borrowers with lower credit scores.
• California VA loans: Guaranteed by the Department of Veterans Affairs, VA loans are offered to eligible veterans and active-duty service members. While the VA doesn't offer loans directly, you can find one through a VA-approved lender in California. VA loan interest rates are typically lower than conventional mortgages, and these loans usually require no down payment.
• California jumbo loans: You'll find higher conforming loan limits in many of California's pricier zip codes, but you may still need to borrow even more money to make homeownership a reality in the state. If you do, you'll need to compare jumbo loan rates from multiple lenders and be prepared to meet higher down payment and credit score requirements.

First-time homebuyer programs in California

Buying a house in California can be pricey, but first-time homebuyers might qualify for grants or other forms of help. This includes:

• CalHFA down payment assistance programs: Low- to moderate-income borrowers can apply for small down-payment and closing-cost assistance loans through CalHFA. One option is the MyHome Assistance program, which allows you to borrow a deferred loan worth up to 3.5 percent of the purchase price or appraised value for a government loan and up to 3 percent with a conventional loan.
• CalHFA Loan Programs: With the CalHFA Conventional Loan Program, you can get a 30-year, fixed-rate conventional loan, potentially at a more affordable interest rate, but you'll also need to meet qualification requirements. The CalPLUS Conventional Loan Program is similar, but with a slightly higher interest rate. These loans can be combined with the CalHFA Zero Interest Program to help pay closing costs. CalHFA also offers lower rate FHA, VA and USDA loans, which come with their own benefits and qualifying criteria.

In addition to statewide assistance programs, be sure to compare local options. Some local organizations offer loans and grants to certain types of buyers, including first-time buyers and low- to moderate-income families.

How to find the best mortgage rate in California

Additional California mortgage resources

• California loan limits by county: Learn the conforming loan limit for your city or town.
• Best mortgage lenders in California: Find out Bankrate's top picks.
• California housing market overview: Know what to expect as a homebuyer or seller in California.
• Cost to buy a house in California: Home prices vary widely across the state. Narrow down your budget here.
• Homeowners insurance in California: Compare policies from a variety of providers.