California Mortgage and Refinance Rates

Looking to buy a home or refinance in the Golden State? Understanding current California mortgage and refinance rates is key to making informed financial decisions. Even if you’re a first-time homebuyer or a seasoned property owner aiming to lower your monthly payments, staying updated on the latest rates can help you save thousands over the life of your loan. In this guide, we’ll discuss today’s mortgage trends, what affects rates in California, and tips to secure the best deal for your situation.

As of Tuesday, July 15, 2025, homebuyers in California are seeing average interest rates of 6.87% for a 30-year fixed mortgage and 6.09% for a 15-year fixed mortgage. Much like the broader national trend, rates across the Golden State are expected to remain around 7 percent through most of 2025. However, experts anticipate a gradual dip, potentially reaching about 6.5 percent by year-end.

Refinance Rates in California

Refinancing is becoming increasingly appealing for California homeowners who locked in higher rates over the past few years, especially those with rates above 8 percent. Data from ATTOM reveals that refinance activity in the state jumped over 11 percent year-over-year from February 2024 to February 2025.

Homeowners with significant equity may also consider a cash-out refinance, offering a potential way to tap into home value for major expenses or financial goals, all while securing a more favorable rate.

National Mortgage Rates by Loan Type

Focusing on the area of California that most interests you is crucial while researching the state’s real estate market. From interior locations like Palm Desert to coastal places like San Diego, housing patterns can differ greatly due to the landscape’s diversity.

Though the state has a reputation for high housing costs, more budget-friendly options do exist, particularly in less densely populated areas of Northern California. Here’s a snapshot of current housing market data to help guide your homebuying journey:

• Median home sales price (February 2025): $832,500
• Median down payment (February 2025): $156,225
• Median days on market (February 2025): 42
• Homeownership rate (Q1 2025): 55.6%

Wherever you plan to buy in California, it’s wise to look beyond home prices. Be sure to compare homeowners insurance policies as well, especially since many insurers have scaled back coverage in response to recent natural disasters.

California homebuyers have access to a wide range of mortgage options, each designed to suit different financial situations and housing needs. From traditional loans to government-backed programs, understanding your choices can help you find the right path to homeownership, whether you’re buying your first home or refinancing in a high-cost market.

1. Conventional Mortgages in California

Conventional mortgage rates and requirements can vary based on where you plan to live and your financial profile. Since California covers a wide range of markets, from budget-friendly towns to high-end urban areas, it’s a good idea to shop around and compare offers to find a loan that fits your needs and budget.

2. CalHFA loans

The California Housing Finance Agency (CalHFA) provides a range of loan programs to help state residents purchase homes. These include standard mortgages as well as assistance programs for down payments and closing costs. To apply, you’ll need to work with a CalHFA-approved lender or a preferred loan officer familiar with the program’s guidelines.

3. FHA loans in California

Backed by the Federal Housing Administration, FHA loans are a popular choice for first-time buyers and those with modest incomes or lower credit scores. These loans aren’t issued directly by the FHA, you’ll need to apply through an FHA-approved lender in California. They’re open to both new and repeat buyers, as long as you haven’t owned a home in the past two years.

4. VA loans in California

For qualified veterans and active-duty service members, VA loans offer a path to homeownership with several advantages. These government-backed loans come with competitive rates and typically don’t require a down payment. While the Department of Veterans Affairs guarantees the loan, you’ll apply through a VA-approved lender.

5. Jumbo loans in California

Given the high cost of real estate in many parts of California, you might need to borrow more than standard conforming loan limits allow. Jumbo loans can bridge that gap, but they come with stricter approval requirements, including a larger down payment and higher credit standards. It’s smart to compare rates from different lenders if you’re considering this type of financing.

Purchasing your first home in California can be a challenge due to the state’s high property prices, but there are a number of assistance programs that can make the process more affordable. First-time buyers may be eligible for grants, low-interest loans, or other financial support, especially if they fall within low- to moderate-income brackets.

1. CalHFA down payment assistance programs

The California Housing Finance Agency (CalHFA) offers support for eligible buyers through its down payment and closing cost assistance programs. One popular option is the MyHome Assistance Program, which provides a deferred loan of up to 3.5 percent of the home’s purchase price or appraised value for government-backed loans, and up to 3 percent for conventional loans. These funds can be used to cover upfront expenses like the down payment and closing costs.

2. CalHFA loan programs

CalHFA also provides fixed-rate mortgage options for first-time buyers. The CalHFA Conventional Loan Program offers a 30-year fixed-rate mortgage with potentially lower interest rates for qualifying borrowers. Another option, the CalPLUS Conventional Loan Program, comes with a slightly higher interest rate but can be paired with the CalHFA Zero Interest Program to help cover closing costs. Additional CalHFA-backed loan types include FHA, VA, and USDA loans, each with specific qualification requirements and benefits tailored to different buyer needs.

3. Check local first-time buyer assistance

Along with statewide resources, it’s worth checking out local programs. Many cities and counties in California offer their own grants or loans to first-time homebuyers, particularly those with lower incomes or who work in public service roles. These programs can offer an extra boost to help cover costs and make homeownership more achievable.

Finding the best mortgage rate in California takes more than just a quick online search. With housing prices on the higher side and rates that vary by lender and loan type, it’s important to prepare financially and explore all your options. Here’s a step-by-step guide to help you secure the most competitive mortgage rate for your California home purchase.

Step 1: Review and improve your credit score

Before you start comparing mortgage lenders, take time to review your credit report and work on boosting your score if necessary. A stronger credit profile can help you qualify for better interest rates and loan terms.

Step 2: Set a clear homebuying budget

Figure out how much home you can comfortably afford, factoring in your income, debts, and expected monthly expenses. A well-defined budget will help you avoid overextending financially and focus your mortgage search.

Step 3: Understand your mortgage options

From conventional loans to government-backed options like FHA, VA, or CalHFA loans, it’s important to explore the types of mortgages available. Each comes with its own requirements, benefits, and rate ranges depending on your financial situation.

Step 4: Shop around and compare lenders

Don’t settle for the first offer you receive. Get rate quotes from at least three different mortgage lenders, and take the time to compare not just the interest rate, but also the loan terms, fees, and lender reputation.

Step 5: Get preapproved for a loan

A mortgage preapproval gives you a clearer picture of what you can borrow and helps you lock in more personalized loan terms. It also strengthens your offer when you’re ready to start house hunting.

Navigating the mortgage process in California can feel overwhelming, but there are several helpful resources that can guide you through each step. Whether you’re a first-time buyer, refinancing an existing loan, or exploring assistance programs, the following organizations and tools offer valuable support:

• California Housing Finance Agency (CalHFA): Offers affordable mortgage programs, down payment assistance, and educational tools for eligible California residents. Their website provides program details, income limits, and a directory of approved lenders.
  
  
• U.S. Department of Housing and Urban Development (HUD) – California Resources: Includes information on housing counselors, FHA-approved lenders, and local housing assistance programs available across California.
  
  
• Consumer Financial Protection Bureau (CFPB): A reliable source for understanding mortgage terms, comparing lenders, and protecting yourself from unfair lending practices.
  
  
• Fannie Mae and Freddie Mac resources: These agencies offer tools to help you estimate loan affordability and explore programs designed to support low- and moderate-income borrowers.
  
  
• Local city and county housing departments: Many municipalities in California offer additional first-time homebuyer grants, homebuyer education courses, or special loan programs based on income or occupation.

Making the greatest financial choice requires being up to date on the latest mortgage rates and lending possibilities, whether you’re purchasing your first house or trying to refinance in California. Now is an excellent time to look into fixed-rate loans, government-backed programs, and refinancing alternatives that fit your goals, since rates are predicted to be stable until 2025. To get the most out of your mortgage, be sure to research lenders, comprehend the associated fees, and utilize regional and state resources.

In California’s ever-changing housing market, you may find a loan that meets your needs and contributes to your long-term financial stability by carefully preparing and conducting your research.