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California Mortgage Rate Trends and Analysis 2016

This page offers California mortgage rate trends and analysis based on nationwide surveys and expert forecasts. We will update this page weekly to bring you the latest mortgage trends across California.

California mortgage rates took a big jump during the week ending on November 18, 2016. The average rate for a 30-year fixed home loan rose almost 40 basis points in a single week, landing at 3.94%. This is based on the latest results from Freddie Mac’s weekly survey of the mortgage market.

California Mortgage Rate Trends for November 2016

On November 17, Freddie Mac announced that the average rate for a 30-year fixed-rate mortgage (FRM) rose to 3.94%, with an average of half a point paid at closing. That’s an increase of nearly 40 basis points (0.40%) over last week’s 30-year FRM average rate of 3.57%.

Average Rates in November 2016
Here are the latest California mortgage rate trends from the latest survey:

  • 30-year Fixed-Rate Morrtgage (FRM): 3.94%
  • 15-year FRM: 3.14%
  • 5/1 Adjustable-Rate Mortgage (ARM): 3.07%

Related: Types of loans in California

Chart: Rate Analysis and History

The chart below shows national and California mortgage trends / history over the last year, based on the weekly market survey mentioned above.

Mortgage rate trends

Primary Mortgage Market Survey ®. Source: Freddie Mac. Enlarge

A couple of things will jump out at you right away. First, and most obvious, is the spike on the far right side of the chart. That spike indicates U.S. and California mortgage rate trends over the last few weeks. As you can see, they have increased sharply in all three of the loan categories (30-year FRM, 15-year FRM, and 5/1 ARM).

The second thing you’ll notice is that California mortgage rates today are the highest they’ve been since the beginning of this year. At the start of 2016, the average rate for a 30-year fixed home loan was 3.97%. It dipped below 3.5% over the summer and stayed in that range for months — until recently.

Given this analysis of California mortgage rate trends, a lot of home buyers and homeowners who have been “on the fence” about getting a loan might take action sooner rather than later. If the recent upward rate trend continues, it would mean higher borrowing costs for purchase and refinance loans.

Calling All ‘Fence Sitters’

California mortgage rate trends have been fairly steady for most of this year, as shown by the chart above. So the recent uptick is something of a surprise for analysts and consumers alike.

The question is: Is this the start of a new trend of rising mortgage rates, or just a blip on the radar? We don’t know the answer to that. But experts are predicting a gradual rise in rates between now and this time next year.

In its latest survey release, Freddie Mac’s economists stated: “If rates stick at these levels, expect a final burst of home sales and refinances as ‘fence sitters’ try to beat further increases…”

The takewaway: Current California mortgage trends, and forward-looking projections, make a strong case for buying a home sooner rather than later.

Get a Mortgage Quote Today

Are you in the market for a home loan? We can help. Bridgepoint Funding has been serving borrowers in California for more than 15 years. We offer a variety of financing options including, FHA, VA and conventional loans.

We can provide you with a rate quote tailored to your situation, the type of loan you need, etc. If you’re a home buyer, we can also help you get pre-approved for a mortgage before you start house hunting (to improve your chance for success).

Contact us today to get started!

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