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Mortgage rates in California
Interest rates in California usually trend below the national average.
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Mortgage rates during the coronavirus
As mortgage rates fall to record lows in the wake of COVID-19, our partners are seeing an increase in demand for loans and refinancing. As they work through this influx of applications, you may see rates that are higher than expected — or no rates at all. We recommend comparing offers from multiple lenders to ensure you're getting the best deal possible.
What's in this guide?
How much do California rates vary by loan?
Average mortgage rates in California ranged from 3.900% to 4.772% in 2018. But interest rates can vary depending on a variety of factors, such as loan type and term.
For instance, the average rate of a 30-year FHA mortgage was 4.772%, whereas a 15-year FHA loan was 4.082%. The difference is less than 1%, but can mean substantial savings.
2018 average rates in California by loan type
| Loan type | 15-year average rate | 30-year average rate |
|---|---|---|
| Conventional | 4.306% | 4.697% |
| FHA | 4.082% | 4.772% |
| VA | 3.900% | 4.546% |
| USDA | N/A | 4.642% |
Based on data from ffiec.cfpb.gov
Consider a $325,000 FHA loan. If you got the average 30-year rate, you’d pay $1,670 a month, excluding taxes and other fees specific to your home loan. But if you chose a 15-year loan, your monthly payment could jump to $2,417.
Although a shorter loan term means you pay more per month, it also means you could save $176,755 in interest over the life of the loan.
Which way are rates trending in California?
Mortgage rates in California are likely to stay at the same current low level into 2020. Historically, California interest rates generally trend slightly below the national average.
Major housing authorities project that national interest rates will stay in the high 3s, averaging about 3.7%. California rates are likely to follow suit.
Compare mortgage rates throughout California
The Golden State has a variety of metropolitan areas, each with slightly different average mortgage rates and home values. If you’re considering moving to a new area, compare rates and property values.
We studied data from the Home Mortgage Disclosure Act (HMDA) to give you an idea of what you might pay on the average 30-year fixed-rate mortgage in different metropolitan areas across California. These costs do not account for taxes, PMI or other fees.
| Metropolitan statistical area (MSA) | Average mortgage rate | Median loan amount | Estimated monthly cost |
|---|---|---|---|
| Bakersfield | 4.789% | $215,000 | $1,300 |
| Chico | 4.873% | $245,000 | $1,300 |
| El Centro | 4.757% | $215,000 | $1,120 |
| Fresno | 4.840% | $245,000 | $1,290 |
| Hanford-Corcoran | 4.744% | $225,000 | $1,170 |
| Los Angeles MSA (Los Angeles County, CA) | 4.693% | $475,000 | $2,460 |
| Madera | 4.786% | $235,000 | $1,230 |
| Merced | 4.895% | $245,000 | $1,300 |
| Modesto | 4.844% | $275,000 | $1,450 |
| Napa | 4.67% | $505,000 | $2,610 |
| San Francisco MSA (Alameda and Contra Costa Counties, CA) | 4.62% | $565,000.00 | $2,900 |
| Oxnard-Thousand Oaks-Ventura | 4.67% | $485,000.00 | $2,510 |
| Redding | 4.85% | $225,000.00 | $1,190 |
| Riverside-San Bernardino-Ontario | 4.79% | $305,000 | $1,600 |
| Sacramento-Roseville-Folsom | 4.75% | $335,000 | $1,750 |
| Salinas | 4.68% | $435,000.00 | $2,250 |
| San Diego-Chula Vista-Carlsbad | 4.61% | $465,000 | $2,390 |
| San Francisco MSA (San Francisco and San Mateo Counties, CA) | 4.30% | $875,000 | $4,330 |
| San Jose-Sunnyvale-Santa Clara | 4.40% | $705,000.00 | $3,529 |
| San Luis Obispo-Paso Robles | 4.68% | $435,000 | $2,250 |
| San Francisco MSA (Marin County, CA) | 4.49% | $735,000 | $3,720 |
| Santa Cruz-Watsonville | 4.68% | $585,000 | $3,030 |
| Santa Maria-Santa Barbara | 4.69% | $405,000 | $2,100 |
| Santa Rosa-Petaluma | 4.71% | $485,000 | $2,520 |
| Stockton | 4.84% | $325,000 | $1,710 |
| Vallejo | 4.82% | $385,000.00 | $2,020 |
| Visalia | 4.76% | $215,000.00 | $1,120 |
| Yuba City | 4.82% | $265,000.00 | $1,390 |
Based on data from ffiec.cfpb.gov.
How to get the best mortgage rate in California
A few tips to help you get the best rate for your home loan:
- Compare loan products. Lenders generally assign different interest rates to their various loan programs. Select the best loan type for your homeownership goals.
- Explore interest rates from multiple lenders. Lenders determine your interest rate. Always shop around to find the best deal.
- Examine the closing costs. In addition to interest rates, compare each lender’s closing costs. These fees can run between 1.07% and 1.25% of the loan amount.
Historical mortgage interest rates in California
Bottom line
California mortgage rates usually come in below the national average. But they also vary depending on the area, the loan program and other factors. Compare mortgages and lenders to make sure you get the best loan terms.
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