Merced, located in California’s central valley, has become the center of attraction for many homebuyers due to its affordability and proximity to major economic hubs. If you are also thinking of purchasing a home in Merced, then one of the first things to focus on is the Current Mortgage rate. This rate plays a major role and helps you determine your monthly payment of the loan. Merced offers you a well-planned location with growing opportunities.
In Addition, the good news for homebuyers is that multiple local and national lenders are now offering exclusive mortgage products. So this guide will help to grab the best deal from the current mortgage rate in Merced, CA.
Real Estate & Housing Trends in Merced, CA
Merced continues to stand out as an appealing destination for homebuyers. 414,735 is the current median sold price, and approximately 491 homes have sold in May, which is an increase from 323 last year. 35 days are the maximum days for homes to be sold. The population of Merced is also expanding day by day. 98,224 is the current population increase from 86,9893 in 2020. According to overall data, it shows the increasing demand in the housing market & makes Merced a good location for living.
Why is Merced Profitable for Homebuyers?
Merced is a beautiful and thriving city that offers well-planned locations, an excellent education system, quality Healthcare, and many more amenities. The increasing trend of the housing market in Merced makes it more suitable for homebuyers. Here are some reasons why Merced is profitable for home buyers:
Affordable Entry point
Merced provides an affordable entry point in a well-planned city in California. For first-time buyers, Merced is a significant location where they can easily enter without being priced out. It is one of the biggest advantages & profits for first-time homebuyers in Merced. Here are some features:
- Lower down payment
- Easier loan qualification
- More room to build equity
- Ideal for first-time buyers
Future Growth & Infrastructure
Merced is a highly profitable location for homebuyers due to its numerous growth opportunities. As this is proximate to exclusive areas like Fresno & Sacramento, it makes it more profitable. Several upcoming transportation, rail, and infrastructure projects are planned in Merced, further supporting its future growth.
There are multiple upcoming transportation, rail & other projects in Merced, California.
Educational & Economic Growth
Merced is also expanding in education. Students & faculty are also attracted to education & economic growth in Merced. Due to expansion, Merced has become a great opportunity for jobs & students. This is also a major reason for profitable living in Merced.
High Quality of Life
Merced offers an affordable cost of living compared to other cities in California. With multiple urban centers, national parks, cultural institutions, & recreational facilities attracts people to live. Its combination of affordability & quality of life makes it a good place to invest and settle.
Current Mortgage Rate in Merced, CA
As of early 2025, the mortgage rates are influenced by several factors like interest rate, Inflation, housing market condition & many more. In this Data, we are considering the mortgage rate of 11 June, 2025 from Realtor & Zillow.
- 30-year Fixed
According to Realtor, the current mortgage rate for a 30-year fixed loan is 6.86% on 11 June, which was 6.90% on 9 June. It decreases by 4 points.
- 15-Year Fixed
The mortgage rate of a 15-year fixed loan on 11 June is 5.86%. It decreased by 5 points from 5.91% on 9 June.
- 5-Year Fixed
For 5 5-year Fixed loan, the current mortgage rate on 11 June is 6.94% & it increases from 12 points, 6.82% on 9 June.
Tips to Select the Best Mortgage Loan
If you are also planning to get a mortgage loan for your Mercedes home purchase, then consider the following tips to select the best mortgage loan:
- Evaluate your plans & budget
- Compare all loan types
- Understand the total cost of purchasing
- Research & compare all the lenders
- Choose the mortgage according to the plans
What Factors Affect the Mortgage Rate in Merced, CA?
Mortgage rates in Merced are influenced by several factors. Here are the key elements that can impact your rate:
Economic Factors: Some economic factors that affect the mortgage rate are:
- Federal Reserve policy
- Inflation
- 10-year Treasury yield
- Overall Economic Condition
Local Market Conditions: Multiple local market conditions affect the mortgage rate of Merced:
- Local housing demand
- Home price
- Local Employment
- Income trends
- Foreclosure rates
Borrower Specific Factors: The borrower, who purchases the home, also affects the mortgage rate in Merced. Let’s see how:
- Credit score
- Down payment
- Loan type
- Loan term
- Debt-to-income Ratio
Lenders Competition: Due to the high demand for housing in Merced, the competition between lenders & banks is high, which also impacts on mortgage rate. While some local lending programs offer low-cost market rates, the presence of multiple lenders often drives competitive pricing, which can benefit borrowers.
Conclusion
Merced, CA, presents a great opportunity for homebuyers seeking affordability, quality of life & economic growth, all in one place. In this blog, we have explored the current mortgage rate for Merced & it results in lower cost at present. So, this is the best time to invest in Merced home purchasing opportunities. If you need information about mortgage product info & implications of the loan type, then feel free to ask anytime.
FAQ for Current Mortgage Rates Merced CA
Q. How many types of Mortgage loans are available in Merced, CA?
Answer: There are multiple types of Mortgage loans available in Merced, CA. Let’s see:
- Conventional loans
- FHA Loans
- VA Loans
- USDA Loans
- Jumbo loans
- ARM Loans
- Construction & renovation loans
Q. Is there a good day to lock in mortgage rates?
Answer: Yes, Monday is the best day to lock in a mortgage rate & Wednesday can be risky. Generally, rates are more steady on Monday & also chances to lower the rates, that’s why you should lock in on Monday.
Q. How often do Mortgage Rate Changes?
Answer: Generally, Mortgage rates change every day & sometimes they fluctuate multiple times in a day due to some factors in Merced.
Q. How much credit score do we need to get the best mortgage rate in Merced?
Answer: As a Credit score plays an important role in getting the best mortgage rate in Merced. Most lenders prefer a credit score of 700 or higher to get the best rates.
Q. How much Down payment is necessary for Merced?
Answer: Here are some major down payments according to different types of loans:
- 5% to 20% for conventional loans
- 3.5% for FHA loans
- For VA & USDA loans, no down payment
