California Mortgage Rates: What You’ll Really Pay and How to Get the Best Rate

I’m Michael DiVita — DRE #01372066 | NMLS #241655, DiVita Home Finance (DRE #01818285 | NMLS #323700), Tiburon, CA. I’ve been in California mortgage lending since 2000 and founded DiVita Home Finance in 2007, and I compare pricing across 40+ wholesale lenders for my clients. Call (800) 239-1103.

California mortgage rates follow the same national bond market as everywhere else. As of September 24, 2026, Freddie Mac’s national average was 7.03% for a 30-year fixed and 6.42% for a 15-year fixed. California borrowers often pay more than the headline — not because of the state, but because California loans are larger (high-balance or jumbo), more often condos or non-traditional income, and priced with loan-level adjustments the headline doesn’t include.

This page explains where rates are right now, which loan category you’re in, what actually sets your rate, and the specific moves that get California borrowers a better one. For a quote on your exact scenario, call or text me — I’ll price it against today’s rate sheets, not last month’s table.

Where Mortgage Rates Stand Right Now

Benchmark	Latest	Context
30-year fixed (Freddie Mac PMMS)	7.03% (Sept 24, 2026)	Up from 6.95% the prior week and 6.30% a year earlier
15-year fixed (Freddie Mac PMMS)	6.42% (Sept 24, 2026)	About 0.6% below the 30-year
Federal funds target range	3.75%–4.00%	Raised 0.25% on Sept 16, 2026 — the first hike since 2023
10-year Treasury yield	~5.17% (Sept 25, 2026)	The market benchmark mortgage rates track

The Freddie Mac survey is a weekly national average for well-qualified borrowers, typically with some points paid. Daily lender pricing moves faster and can run above or below it. Your rate depends on your scenario.

Why do rates move every day, and what does the Fed’s hike really mean? See why mortgage rates change daily and my 2026 California mortgage outlook.

Step 1: Know Which Loan Category You’re In

Your loan category drives your pricing more than anything else. It depends on your loan amount and county. For 2026:

Category	1-unit loan amount	Pricing notes
Conforming	Up to $832,750 (all counties)	Fannie Mae/Freddie Mac pricing — the basis for most headline rates
High-balance conforming	$832,751 up to your county limit (max $1,249,125)	Agency loan with an added pricing adjustment (Fannie Mae: 1.0 point on a fixed rate at 75.01–80% LTV)
Jumbo	Above your county limit	Priced by each lender or private investor; for strong borrowers can be close to — or sometimes better than — high-balance
FHA	County limits from $541,287 to $1,249,125	3.5% down with 580+ credit; mortgage insurance adds to cost
VA	No loan limit with full entitlement	0% down for eligible veterans; funding fee applies unless exempt

2026 limits in key California counties

County	Conforming (1 unit)	FHA (1 unit)
Alameda, Contra Costa, Los Angeles, Marin, Orange, San Benito, San Francisco, San Mateo, Santa Clara, Santa Cruz	$1,249,125	$1,249,125
San Diego	$1,104,000	$1,104,000
Napa	$1,017,750	$1,017,750
Sonoma	$897,000	$897,000
Sacramento, Placer, El Dorado, Yolo	$832,750	$764,750
Riverside, San Bernardino	$832,750	$690,000

Full county tables, including 2–4 unit limits, are in my 2026 conforming loan limits guide and FHA vs. conforming limits.

Why it matters: most national rate tools assume a conforming loan. If you’re buying a $1.6 million home in San Francisco with 20% down, your $1.28 million loan is jumbo, and the rate you saw online doesn’t apply to you. Conversely, a slightly larger down payment — or a first mortgage at the county limit plus a second lien — can sometimes move you into better pricing.

Why California Borrowers Often Pay More Than the Headline

• Loan size. C.A.R.’s August 2026 medians were $901,420 statewide, $1,272,000 in the Bay Area, $1,650,500 in Marin, and $1,875,000 in San Francisco. Many buyers need high-balance or jumbo loans.
• Condos. Buildings with HOA litigation, weak reserves, or SB 326 balcony-inspection issues may not meet Fannie/Freddie standards, pushing buyers to non-warrantable condo lenders at higher rates. Even approved attached condos carry up to a 0.75-point Fannie Mae adjustment above 75% LTV.
• Self-employed and complex income. Borrowers who write off a lot of income often qualify through bank statement or other non-QM programs, which cost more than agency loans.
• Investment and second homes. Fannie Mae’s adjustment is 3.375 points at 75.01–80% LTV on a purchase — a big reason investors often compare agency loans with DSCR loans.
• Insurance. In fire-exposed areas, insurance doesn’t change the rate but raises your total payment and debt-to-income ratio, and some properties need a FAIR Plan policy plus supplemental coverage. See the FAIR Plan guide.

Step 2: Optimize Your Credit Score First

Credit is the biggest lever you control. On a conventional purchase at 75.01–80% LTV, Fannie Mae’s loan-level price adjustment is 0.375 points at 780+, 0.875 at 740–759, 1.25 at 720–739, and 2.25 at 640–659. Jumbo lenders tier pricing similarly, often at 700, 720, 740, and 760.

Moves that help within 30–90 days:

• Pay revolving balances down — ideally below 30% of each card’s limit, lower is better.
• Don’t open new accounts or close old ones before you apply.
• Dispute errors. If a correction or payoff will move you across a tier, ask me about a rapid rescore through the lender.

More detail: credit score requirements and mortgages with credit challenges.

Step 3: Use Your Down Payment Strategically

Pricing improves at each LTV tier (95%, 90%, 85%, 80%, 75% and below). On conventional loans, 20% down also eliminates PMI. Example: a $1.4 million San Francisco purchase with 15% down is a $1,190,000 loan — within the $1,249,125 high-balance limit. A $1.6 million purchase with 15% down is a $1,360,000 jumbo. Knowing exactly where your county’s line sits can change your rate and your underwriting rules. When you’re between 10% and 20% down, compare a single loan with mortgage insurance against a first-and-second (piggyback) structure.

Step 4: Decide on Points With a Break-Even, Not a Guess

A discount point costs 1% of the loan amount and often lowers the rate by roughly 0.125%–0.25%, depending on the day’s pricing. Divide the cost by the monthly savings to get your break-even:

Loan amount	Cost of 1 point	Savings if it cuts 0.25% (from 7.00%)	Break-even	Savings if it cuts 0.125%	Break-even
$800,000	$8,000	~$134/mo	~60 months	~$67/mo	~119 months
$1,000,000	$10,000	~$167/mo	~60 months	~$84/mo	~119 months
$1,200,000	$12,000	~$200/mo	~60 months	~$100/mo	~120 months

If there’s a real chance you’ll refinance or sell within a few years — and with rates near 7%, many buyers hope to refinance — paying points is often money you won’t earn back. A seller-paid buydown is a different story: it’s the seller’s money.

Step 5: Match the Loan Term to Your Timeline

• 30-year fixed: maximum payment certainty and the easiest to refinance later.
• 15-year fixed: a lower rate (Freddie Mac’s 15-year averaged about 0.6% below the 30-year in late September 2026) and much faster payoff — but a higher payment. On $700,000, about $6,067/month at 6.42% for 15 years vs. $4,671 at 7.03% for 30 years. See 15 vs. 30 year.
• ARMs (5/6, 7/6, 10/6): often priced below the 30-year fixed; useful if you expect to sell or refinance before the first adjustment. Understand the caps and worst-case payment. See ARM vs. fixed.

Step 6: Compare APR and Loan Estimates, Not Just Rates

The interest rate is only part of the cost. APR folds in points, lender fees, and mortgage insurance so you can compare offers. Ask each lender for an official Loan Estimate on the same loan amount, term, and lock period — that’s the only apples-to-apples comparison. A slightly higher rate with no points can be the better deal if you expect to refinance.

Step 7: Shop Lenders — Especially for Jumbo and Non-QM

Conforming pricing is fairly standardized; jumbo and non-QM pricing is not. Lenders’ appetites change week to week, and the best lender for a W-2 borrower with 25% down is often not the best for a self-employed borrower with 10% down. As a broker, I can put one application in front of many wholesale lenders and show you real competing offers. Broker compensation is disclosed on your Loan Estimate — paid either by you or by the lender, never both.

Step 8: Lock When the Payment Works

Once you’re in contract, lock for long enough to cover your closing date with some cushion — 30 to 45 days for most purchases, longer for complex files or new construction. Longer locks cost more. Some lenders offer a one-time float-down if rates improve meaningfully. In the current environment, with the Fed tightening and rates moving 0.10% or more in a week, floating is a bet. Details in my rate lock guide.

Regional Notes

Bay Area and Marin

Most single-family purchases are high-balance or jumbo. Fully underwritten approvals, jumbo shopping, and first-plus-second structures matter most here. See Marin County mortgage rates and San Francisco mortgages.

San Diego

San Diego County’s 2026 conforming and FHA limits are both $1,104,000, and the C.A.R. August 2026 median was $1,090,000 — so many buyers can stay within agency limits. San Diego also has a large military and veteran population, and VA loans (0% down, no monthly mortgage insurance, no loan limit with full entitlement) are often the best option for those who qualify. See VA loan limits.

Inland Empire

Riverside and San Bernardino counties are at the $832,750 conforming baseline, with a 2026 FHA limit of $690,000. C.A.R. put the August 2026 medians at $632,990 (Riverside) and $522,370 (San Bernardino), so FHA, conventional low-down-payment, VA, and down payment assistance programs are common. Mortgage rates themselves aren’t lower inland — prices are.

Sonoma and Napa

Sonoma’s 2026 conforming and FHA limit is $897,000; Napa’s is $1,017,750. Many Santa Rosa, Petaluma, and Rohnert Park purchases fit within those limits, while Healdsburg and wine-country estates often need jumbo financing. Rural parcels, vineyards, and short-term rentals may need specialized lenders — see vineyard loans and DSCR loans for short-term rentals, and check local STR rules before counting on rental income.

California Mortgage Rate FAQ

What are current mortgage rates in California?

California rates follow the national market. On September 24, 2026, Freddie Mac’s national average was 7.03% for a 30-year fixed and 6.42% for a 15-year fixed. Your rate depends on loan size, credit score, down payment, property type, occupancy, and documentation, so get a personalized quote.

Are California mortgage rates higher than the national average?

For the same loan and borrower, no. California borrowers often pay more because their loans are more often high-balance or jumbo, condos, investment properties, or non-QM loans, each of which carries different pricing than the conforming loan behind most national averages.

What is the conforming loan limit in California for 2026?

The baseline is $832,750 for a single-family home, and high-cost counties go up to $1,249,125. Ten counties are at the ceiling, including Los Angeles, Orange, San Francisco, Marin, Santa Clara, and Alameda. San Diego is $1,104,000, Napa $1,017,750, and Sonoma $897,000. Loans above your county limit are jumbo loans.

Do mortgage rates differ by county in California?

The rate for the same loan doesn’t change by county, but the loan category does. A $1.1 million loan is conforming in Los Angeles or San Diego but jumbo in Sonoma, and that changes pricing and underwriting.

What credit score do I need for the best rate?

Conventional pricing is best at 780+, with meaningful steps at 760, 740, and 720. Jumbo lenders commonly want 700–740+, with the best pricing at 760+. FHA allows 580 with 3.5% down, and many VA lenders look for about 620.

Should I pay points to lower my rate?

Only if you’ll keep the loan past the break-even. One point costs 1% of the loan and often lowers the rate by about 0.125%–0.25%, which usually means a break-even of roughly 5 to 10 years. If you may refinance or sell sooner, skip the points.

What’s the difference between the interest rate and the APR?

The interest rate is the cost of borrowing the principal. The APR adds most loan costs — points, lender fees, and mortgage insurance — spread over the loan term, which makes it better for comparing offers. Compare Loan Estimates on identical terms.

Can a mortgage broker get me a better rate than a bank?

Often, especially for jumbo, self-employed, and investment loans, because a broker can compare many wholesale lenders at once. Compensation is disclosed on your Loan Estimate and is paid either by you or by the lender, not both.

Related Resources

• Why Mortgage Rates Change Daily
• Mortgage Rate Lock Guide
• California Mortgage Outlook 2026
• Marin County Mortgage Rates
• California Jumbo Loans
• 2026 Conforming Loan Limits
• Should I Buy Now or Wait?
• Mortgage Calculator

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