With home prices still high and borrowing costs far from their historic lows, understanding mortgage rate trends in California is essential for homebuyers and homeowners alike in 2025. Here’s a breakdown of where rates stand, what’s influencing them, and what it all means for those buying or refinancing in the Golden State.

Current Mortgage Rates in California

As of May 30, 2025, average 30-year fixed mortgage rates in California hover around 6.625%, with an APR of 6.796%. While lower than the 7.04% peak seen in January, rates have remained relatively sticky in the mid-to-high 6% range throughout the year.

Here’s a snapshot of today’s most common mortgage options in California:

Conventional Fixed-Rate Loans

Term	Rate	APR	Monthly Payment (based on $464K loan)
30-year	6.625%	6.796%	$2,971
20-year	6.375%	6.580%	$3,425
15-year	5.875%	6.162%	$3,884
10-year	5.625%	6.029%	$5,064

Adjustable-Rate Mortgages (ARM)

Term	Rate	APR	Monthly Payment
10/6 mo	7.375%	7.486%	$3,204
7/6 mo	6.250%	6.780%	$2,856
Term	Rate	APR	Monthly Payment

Jumbo Loans (For Homes > $726,200)

Term	Rate	APR	Monthly Payment (based on $940K loan)
30-year	6.875%	7.033%	$6,175
20-year	7.000%	7.233%	$7,287
15-year	6.750%	7.002%	$8,318

What’s Driving Today’s Mortgage Rates?

Mortgage rates in 2025 are being influenced by a complex mix of economic signals:

• Federal Reserve policy: After cutting rates three times in late 2024, the Fed has since paused and held the federal funds rate steady at 4.25%–4.5%.
• Tariff uncertainty: New tariffs from the Trump administration are creating additional inflationary pressure and stalling construction due to rising building material costs.
• Market sentiment: Despite some rate cuts, mortgage rates haven’t followed suit—highlighting that Fed decisions don’t always lead to immediate mortgage relief.

Should Buyers Wait or Act Now?

While some are waiting for mortgage rates to fall, industry experts caution that this could backfire. In fact, mortgage rates rose after the last three Fed cuts in 2024.

“If you find a home you love and can afford it, there’s no reason to wait,” advises Fred Bolstad of U.S. Bank.

Moreover, locking in a rate now with the option to refinance later could be a smarter strategy than waiting for the perfect market moment.

Refinancing in 2025: Is It Worth It?

Refinancing may still make sense—especially for homeowners with mortgage rates above 6.5% or those looking to consolidate debt. However, most Americans refinanced at record lows in 2020–2021, and over 80% of current mortgage holders have rates well below today’s averages.

Refinance activity surged briefly in April 2025 but tapered off as rates remained high. As long as mortgage rates float near 7%, refinance momentum will likely stay slow.

2025 Mortgage Rate Forecasts

Here’s what leading institutions expect by the end of 2025:

• NAHB: 6.2%–6.4%
• NAR: 6.4%
• Zillow: Mid-6% range, but bumpy
• Fannie Mae: 6.2%
• Freddie Mac: “Higher for longer”
• MBA: 6.7%
• J.P. Morgan: ~6.7%
• Wells Fargo: 6.5%

In short, most experts predict rates will stay in the 6.5%–7% range through late 2025.

Tips for Homebuyers and Homeowners

• Shop around: Lenders offer different rates based on your credit, loan size, and down payment. Comparing offers can save thousands.
• Know your goals: Refinancing makes sense only if it aligns with your financial strategy—especially in a higher-rate environment.
• Stay alert: Rates can fluctuate weekly. Working with a lender who can lock a good rate quickly can make a difference.

What’s Next?

All eyes are on the next Federal Reserve meeting (June 17–18, 2025). While the odds of a rate cut remain low, any signs of softening inflation or economic slowdown could influence mortgage rate trends.

Until then, expect mortgage rates in California to remain elevated, though stable, making affordability a key concern—but also an opportunity for well-prepared buyers.