Current Mortgage Rates in California – California real estate is typically in high demand, hence the state’s property values are very resistant to downturns in the economy. The more informed you are about current mortgage rates in California, the better equipped you will be to choose the appropriate home and make the best financial decisions.
Buyers in California are frequently willing to spend top dollar for a home due to the state’s robust economy and the federal government’s significant employment presence. There are a ton of fantastic areas to live in California, partly because it’s one of the largest states in the U.S in terms of both people and land area.
Moving to California might be for you if you’re in the market for a new location with lots of sunlight, convenient access to the ocean, and delectable cuisine. It’s a popular choice—after all, people have been moving in droves to California for decades.
You might ask: what makes California so special? There’s the yearlong mild weather, beautiful coast, the wine country, gold mine of job opportunities, and so much more. Not to mention the famous hotspots and tourist destinations like Los Angeles, San Francisco, San Diego, Sacramento, Palo Alto, and more. It truly is the land of plenty.
Real Estate Trends in California
According to Norada Real Estate, home sales fell below the benchmark annualized 300,000 levels in July for the first time since May 2020 as the consequences of rising interest rates and high home prices affected prospective purchasers. As you can see, the pandemic took its toll on the state.
However, July 2022 saw an uptick in annual home price growth in the California housing market. Is it now safe to say that the California market is bouncing back? According to the California Association of Realtors (CAR), the number of homes for sale has increased when compared to the previous year. In addition, California’s housing supply is currently restored to pre-pandemic levels. The monthly supply increased by 68.4% from the previous year in fact.
In light of the recent market shift, CAR is expecting around 380,630 existing single-family home sales. Furthermore, the California median home price is anticipated to increase by 9.7% to $863,390 in 2022, from the yearly median of $786,750 in 2021.
Mortgage Rates in California
Below is a list of the current mortgage rates as of October, 20228/26/2022, according to Bankrate’s online division. These rates are provided by our partner network Forbes Advisor, and it is important to note that they are estimates. This means that they may or may not exactly reflect market conditions – especially since they tend to fluctuate so much. Therefore, there’s a chance that your rate will be different. You should get in touch with Reliance Financial to get a personalized pricing quote.
15-Year Fixed Mortgage Rates:
The average rate for a 15-year fixed-rate mortgage today is 5.12%, with an annual percentage rate of 5.14%. The 15-year fixed-rate mortgage was 4.94% at the same time last week. The current rate exceeds the 52-week low of 4.62%.
The current average 15-year fixed annual percentage rate is 5.14%. This time last week, it was 4.97%. On a $100,000 mortgage, the monthly principal and interest payment for a 15-year, fixed-rate loan at today’s interest rate of 5.12% is going to be $797 (not including taxes and insurance).
30-Year Mortgage Rates
According to Bankrate.com, a 30-year fixed mortgage has an average rate of 5.90% and an annual percentage rate of 5.91%. The average rate for a 30-year fixed-rate mortgage is 5.90% this week compared to a rate of 5.68% last week, meaning that borrowers will pay higher interest this week. Over the previous 52 weeks, the rate ranged from 5.26% to 6.11%, with 6.11% representing the highest rate. A 30-year, fixed-rate mortgage has an annual percentage rate (APR) of 5.91%, which includes interest and any lender costs. The APR last week was 5.69%.
Jumbo Mortgage Rates
The average rate for a 30-year jumbo loan is 5.91%, while the annual percentage rate is 5.91%. A 5/1 ARM has an average rate of 4.40% and an APR of 6.07%. The typical rate for the week was 5.70%. A jumbo mortgage’s 30-year fixed rate is currently higher than the 52-week low of 5.19%.
Frequently Asked Questions about Mortgage Rates
Q1: Does mortgage refinancing affect your credit?
Mortgage refinancing can impact credit and may come with some additional upfront charges. Let’s examine the impact of refinancing on your credit report and score:
- Credit Inquiry: When you apply for credit—whether it’s for a credit card or a home loan refinance—the lender will run a hard credit check, momentarily lowering your credit score. Your credit score is 10% hard credit inquiries. It usually indicates rate shopping to credit agencies when you submit numerous applications of the same type in a short time. However, submitting many applications a few months apart could count as making distinct inquiries. There is a brief decline with each inquiry.
- Average Age of Your Credit History Matters: Your credit report may list a refinanced mortgage as a new loan, which reduces the average age of your credit history. 15% of your overall score is based on how long you’ve had credit. A shorter credit history suggests to potential creditors and lenders that you don’t have much expertise with credit, even though opening new accounts and paying bills on time will improve your score over time. It affects your overall score even though it’s not a big component.
- Closed Loan: Your refinanced loan pays off your first loan, causing the first loan to close. The amounts you owe, your credit usage, and the length of your credit history all change once you close a loan.
Q2: Can you pay off a mortgage early?
Paying off your mortgage early can save you tens of thousands of dollars in interest because mortgages are often big debts that last for several decades or more. Not to mention how liberating it is to not have to worry about a mortgage payment each month. Principal and interest are divided when you deliver your monthly check to your mortgage lender. A significant percentage of such a payment is used to pay interest at the beginning of the loan.
More of the payment is used for principal reduction over time. Amortization enables the lender to recover a greater amount of their investment within the first few years of repayment. Applying extra payments to the principal is the key to paying off your mortgage sooner. You shouldn’t necessarily pay off your mortgage early just because you can. Mortgage prepayment has benefits and drawbacks. But you have to look at the numbers if you truly want to know if it’s a wise choice.
To receive a great deal on your home, buy, or refinance in California, we suggest you shop around for your mortgage loan and compare plenty of options. Within the state, the cost of living and housing varies greatly between counties, providing prospective homeowners with a wide range of options for both affordable and more expensive property purchases.
Reliance Financial is here to help if you have any questions about getting a mortgage in California. Whether you’re purchasing your first home, your forever home, or a financial asset, we can assist you in finding the best mortgage for your specific needs.