Current California Mortgage and Refinance Rates
Mortgage interest rates currently average 6.06% for 30-year fixed loans and 5.22% for 15-year fixed loans.
Refinance rates in California
30-year FIXED
Current refinance rates are averaging:
6.48%
15-year FIXED
Current refinance rates are averaging:
6.06%
- Rate-and-term refinances change either your interest rate or loan term (and you can even do both), which can help reduce your monthly mortgage payment. Right now, refinance rates are lower than purchase mortgage rates.
- Cash-out refinances give homeowners with sufficient home equity a way to tap that equity and refinance their mortgage at the same time. They usually come with higher rates than regular refinances, since you’re taking out extra cash.
- Conventional refinances are any loans that aren’t part of a government-backed loan program. These loans sometimes come with higher rates than government-backed refinances, but also sometimes they’re lower. For instance, right now FHA refinances are carrying higher rates than conventional refinances on average, while VA refinance loans retain their competitive edge, coming in below both.
- FHA refinances are often a go-to option for first-time homebuyers because they’re insured by the Federal Housing Administration (FHA). The FHA’s backing means borrowers can qualify with lower credit requirements than conventional loans. Nationwide, FHA loan rates are currently slightly higher than conventional refinance rates.
- VA refinances are only offered to qualified military borrowers and are backed by the U.S. Department of Veterans Affairs (VA). Their rates are typically very competitive; in the current rates environment in California, you can expect a VA refinance rates to be around 0.2 percentage points lower than an FHA refinance.
See whether refinancing makes sense for you using our mortgage refinance calculator.
What is the current mortgage rates forecast?
The current mortgage rates forecast is for rates to remain around 6.0% in early 2026 after three rate cuts by the Federal Reserve in late 2025.
Dropping rates alone can’t solve the current home affordability crisis, but they would help. Lower rates could also be an opportunity for the housing market to bounce back.
How do I get the best mortgage rate for my California home loan?
There are many factors determining mortgage rates—some that are in your control, and some that aren’t. Here are a few steps you can take now to get the best mortgage rate:
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Boost your credit
If you only pay attention to one factor influencing the mortgage rates you’re offered, it should be your credit score. Taking the time to repair or improve your credit before applying for a mortgage can save you a lot in interest charges over the life of a loan. -
Lower your debt-to-income (DTI) ratio
Lenders use your DTI ratio to evaluate your current debt load, as well as how much you can afford to add onto it when buying a home. Because a lower DTI looks less risky to lenders, the lower yours is, the better the rates they’ll offer you . If you have the ability to pay off some debt, increase your income or get a cosigner, you can unlock the low rates you’re looking for. -
Buy a single-family, site-built home
Because lenders charge more interest for loans they deem riskier, it can pay to avoid buying a manufactured home, a property with more than one unit, a vacation home or an investment property. -
Pay mortgage points
Mortgage points offer an enticing deal to homebuyers: Make an upfront interest payment now, and in return watch your interest rate drop. Typically you’ll pay 1% of the mortgage loan amount to reduce your rate by 0.25 percentage points. -
Compare offers from multiple lenders
Before you settle on a lender, take time to gather loan estimates from three to five lenders. Comparing their offers and choosing the best deal can save you thousands of dollars over the life of your loan, according to LendingTree data.
Read more about our picks for the best mortgage lenders.
When you apply for a mortgage, lenders are required by law to send you a loan estimate within three business days. Once you choose to move forward with a loan offer, you should start thinking about a mortgage rate lock. This guarantees that the interest rate you received in your offer won’t change as you make your way to closing.
California home loan programs
CalHFA Mortgage Loan Programs
The California Housing Finance Agency offers programs for borrowers who want conventional, FHA, VA or USDA loans with fixed interest rates. Borrowers who can afford to take on a slightly higher interest rate with that first mortgage may want to use the CalPlus FHA program or CalPlus conventional program to access a zero-interest second mortgage that can cover closing costs up to 3% of the first mortgage amount. For additional funds, you can combine this with down payment assistance from the MyHome Assistance Program.
MyHome Assistance
MyHome programs can be used with FHA or conventional loans and offer funds that can be used toward a down payment or closing costs. The maximum amount you can access is 3.5% of the home’s purchase price or its appraised value (whichever is less). The money comes in the form of a second mortgage that doesn’t have to be paid off until the home is sold, refinanced or fully paid off.
Dream for All
Administered by the CHFA, Dream for All provides a shared-appreciation loan program available for first-time homebuyers who need help affording a down payment or closing costs. “Shared appreciation” means you won’t have to pay the loan back until you sell or transfer the home. At that point, you’ll not only owe back the full loan amount, but an additional amount that represents a share of the home’s appreciation in value. You can borrow up to 20% of the first mortgage loan amount.
Who qualifies
Borrowers must:
- Be first-time homebuyers
- Use the assistance in conjunction with a Dream For All Conventional first mortgage
- Use an approved lender
- Purchase a home in the state of California
- Complete homebuyer education courses
At least one borrower must:
- Be a first-generation homebuyer (at least one borrower)
- Be a resident of California
Who qualifies as a first-time homebuyer
- People who have never owned a home
- People who haven’t owned real estate in the last three years
- People who have lived with a spouse in a home owned by that spouse at any time in the last three years may not qualify
Who qualifies as a first-generation homebuyer
- Borrowers who have not owned a home in the United States in the last seven years and whose parents do not own a home in the United States (or didn’t at the time of their deaths)
or
- Borrowers who have ever been in foster care
Learn about different types of CA mortgage loans
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California conventional loans
For borrowers with strong credit and some down payment savings, a conventional loan is a very traditional option. Their minimum requirements are usually set by Fannie Mae and Freddie Mac, though some lenders set their own guidelines in order to cater to buyers with unique needs. -
California FHA loans
FHA loan requirements give buyers with lower credit a more accessible option, allowing for qualification with credit as low as 500 if you make a 10% down payment. You can put down as little as 3.5%, though, as long as you maintain a 580 credit score. -
California VA loans
VA loan requirements are even more forgiving than conventional or FHA loan requirements because they’re intended to help as many military service members get into homes as possible. You’ll need to have a qualifying military service record to access a VA loan. -
Streamline refinances
are for California homeowners who have an FHA or VA loan and want to refinance into another loan within that same program. FHA streamline refinance loans or VA interest rate reduction refinance loans (IRRRLs) allow you to do this with less paperwork and less hassle than other refinance programs.