California Mortgage and Refinance Rates

Current mortgage interest rates in California

As of Sunday, December 22, 2024, current interest rates in California are 7.22% for a 30-year fixed mortgage and 6.47% for a 15-year fixed mortgage.

The median sale price for a single-family home in California was up 6.5 percent year-over-year to $886,560 as of July 2024, according to the California Association of Realtors. However, if you’re willing to cast a wide net for California living, you can find significantly lower prices in the far northern reaches of the state. Median home prices in that part of the state are $386,450 — nearly $1 million cheaper than the median home price in the bay area.

Refinance rates in California

More than 12,000 mortgages were refinanced in California in June 2024, according to ATTOM Data Solutions. While refinance rates are much higher than they were in early 2021, they have started to come down. If you recently bought a home with a mortgage rate of 7 or 8 percent, keep an eye on rates, as it might make sense to refinance if they drop enough in the near future. 

If you’ve had your property in California for a long time, you likely have much more tappable equity now, which can allow you to do a cash-out refinance to further your financial goals. ATTOM’s data show that more than half of California properties are considered “equity-rich” as of the third quarter of 2024.

California mortgage rate trends

While mortgage rates are hard to predict, California mortgage rates follow national mortgage rates, which have been falling in recent weeks. The current consensus is for that trajectory to continue going into the fall and the end of 2024. 

Along with lower mortgage rates bringing relief to the housing affordability problem, declining median home prices in California could bring additional relief. In July 2024, the median home price in California fell below $900,000 for the first time in four months, according to the California Association of Realtors. In addition, regardless of where you’re looking, it’s important to remember that real estate is a hyper-local industry. In the bay area, for example, San Mateo’s median sold price of $2.1 million is more than three times higher than Solano’s $586,400 median price. 

National mortgage rates by loan type

Mortgage statistics for California

With beaches, mountains and a vibrant economy, California is home to some of the nation’s most expensive housing markets. Affordability is a real challenge here, but over the decades, California homeowners have been rewarded with outsized appreciation. Here are some statistics about mortgages and the housing market in The Golden State:

• Median single-family home sales price, July 2024: $886,560
• Median condo/townhome sales price, July 2024: $680,000
• Total home sales, July 2024: +4.1% YoY
• Median days on market, July 2024: 20
• Homeownership rate, Q4 2023: 55.8%
• Median down payment, June 2024: $164,000

Sources: California Association of Realtors, U.S. Census Bureau, ATTOM

Mortgage options in California

There are plenty of mortgage options in California. The most common types of loans include:

• California conventional mortgages: Rates and requirements will vary depending on the area you want to live in and your financial situation. You can compare mortgage rates to find the option that’s right for you.
• 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. They are offered to first-time homebuyers, defined as those that have not purchased a home in the past two years, as well as repeat buyers. 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 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 is a pricey proposition, but first-time homebuyers might qualify for grants or other forms of help.

• CalHFA down payment assistance programs: Low- to moderate-income borrowers can apply for small down payment and closing costs 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 to help you cover closing costs and the down payment. Another option is the California Dream For All Shared Appreciation Loan, which lends qualifying first-generation, first-time buyers up to 20 percent of the home’s purchase price. The loan must be repaid, along with up to 20 percent of the home’s appreciated value.
• CalHFA Loan Programs: With the CalHFA Conventional Loan Program, you can get a 30-year fixed-rate mortgage on the conventional market. This means you’ll have access to competitively low interest rates, but you’ll also need to meet qualification requirements. The CalPLUS Conventional Loan Program is similar, but with a slightly higher interest rate that can be combined with the CalHFA Zero Interest Program to help pay closing costs. CalHFA also offers low-interest rate FHA, VA and USDA loans, which come with their own benefits and qualifying criteria.
• CalFHA Forgivable Equity Builder Loan: Used in conjunction with a CalHFA mortgage, this loan gives a first-time buyer up to 10 percent of the purchase price. If the borrower continuously occupies the home for five years, the loan is forgiven.

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

How to find the best mortgage rate in California

• Step 1: Strengthen your credit score - Long before you start looking for a mortgage lender or applying for a loan, give your finances a checkup, and improve your credit score if needed.
• Step 2: Determine your budget - To find the right mortgage, you’ll need a good handle on how much house you can afford.
• Step 3: Know your mortgage options - There are a few different types of mortgages.
• Step 4: Compare rates and terms from several lenders - Rate-shop with at least three different banks or mortgage companies to get the best deal.
• Step 5: Get preapproved for a mortgage - Getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation.

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.
• How to buy a house in California: Get set up for a successful house hunt with this guide.
• 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.
• Mortgage calculator: Calculate possible mortgage payments to estimate what to expect.

Meet our Bankrate experts

Written by: Jeff Ostrowski, Principal Reporter, Mortgages

I cover mortgages and the housing market. Before joining Bankrate in 2020, I spent more than 20 years writing about real estate and the economy for the Palm Beach Post and the South Florida Business Journal. I’ve had a front-row seat for two housing booms and a housing bust. I’ve twice won gold awards from the National Association of Real Estate Editors, and since 2017 I’ve served on the nonprofit’s board of directors.

Read more from Jeff Ostrowski

Edited by: Laurie Dupnock, Editor, Home Lending

I’ve spent five years in writing and editing roles, and I now focus on mortgage, mortgage relief, homebuying and mortgage refinancing topics. I’m most interested in providing resources for aspiring first-time homeowners to help demystify the homebuying process. In 2021, I earned a Poynter ACES Certificate in Editing. I have an MA in English. 

Read more from Laurie Dupnock