California Mortgage and Refinance Rates

Current mortgage interest rates in California

As of Wednesday, July 10, 2024, current interest rates in California are 7.00% for a 30-year fixed mortgage and 6.47% for a 15-year fixed mortgage.

The median home sale price in the state was up 11.4 percent year-over-year as of April 2024, according to the California Association of Realtors. Los Angeles and the San Francisco bay area sales prices have grown even further. Those gains, plus today’s higher mortgage rate environment, continue to make housing affordability a challenge.

Refinance rates in California

Mortgage refinance rates have more than doubled since the pandemic, making knowing when to refinance a tough call for many Californians. However, many California homeowners have much more tappable equity now. With a cash-out mortgage refinance, you could take advantage of this asset to help further your financial goals.

California mortgage rate trends

While mortgage rates are difficult to predict, the current consensus is for rates to remain well above historical lows for the foreseeable future, including in California.

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 home sales price, April 2024: $904,210
• Total home sales, April 2024: +4.4% YoY
• Median days on market, April 2024: 16
• Homeownership rate, Q4 2023: 56%
• Average primary mortgage amount, 2023: $662,170

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

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. They require no down payment and typically have lower interest rates than conventional mortgages.

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.

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