California Mortgage Rates Today See a Spike of 22 Basis Points – August 20, 2025

Are you keeping an eye on mortgage rates in California? As of today, August 20, 2025, potential homebuyers are facing a noticeable shift. The average 30-year fixed mortgage rate in California has jumped by 22 basis points, reaching 6.89%. This increase could impact your affordability and overall home-buying strategy, so let's dive into what's happening and what it means for you.

California Mortgage Rates Today See a Spike of 22 Basis Points – August 20, 2025

How Does This Affect You?

A 22 basis point increase might not sound like a lot, but it can add up significantly over the life of a loan. Let's break down how this impacts your wallet:

• Higher Monthly Payments: With a higher interest rate, you'll pay more each month for your mortgage.
• Increased Total Interest Paid: Over 30 years, even a small rate increase can result in thousands of dollars more in interest paid.
• Reduced Affordability: If rates rise, the amount you can afford to borrow might decrease, potentially impacting the type of home you can buy. If you get pre-approved, ensure to get the latest rates so you get an accurate indication of what to expect.

Breaking Down the Numbers: California Mortgage Rates on August 20, 2025

Here's a look at the current mortgage rates in California based on data from Zillow:

California Conforming Loans

PROGRAM	RATE	1W CHANGE	APR	1W CHANGE
30-Year Fixed Rate	6.89%	up 0.21%	7.06%	down 0.06%
20-Year Fixed Rate	7.02%	0.00%	7.13%	0.00%
15-Year Fixed Rate	5.84%	up 0.08%	5.94%	down 0.11%
10-Year Fixed Rate	6.01%	0.00%	6.10%	0.00%
7-year ARM	7.44%	0.00%	7.51%	0.00%
5-year ARM	7.38%	up 0.11%	7.52%	down 0.29%
3-year ARM	—	0.00%	—	0.00%

California Government Loans

PROGRAM	RATE	1W CHANGE	APR	1W CHANGE
30-Year Fixed Rate FHA	6.00%	down 0.02%	7.00%	down 0.03 %
30-Year Fixed Rate VA	6.05%	down 0.13%	6.27%	down 0.12%
15-Year Fixed Rate FHA	5.50%	down 0.03%	6.46%	down 0.03%
15-Year Fixed Rate VA	5.66%	down 0.17%	6.02%	down 0.17%

California Jumbo Loans

PROGRAM	RATE	1W CHANGE	APR	1W CHANGE
30-Year Fixed Rate Jumbo	6.90%	up 0.01%	7.13%	down 0.18%
15-Year Fixed Rate Jumbo	6.17%	up 0.04%	6.30%	down 0.10%
7-year ARM Jumbo	7.42%	0.00%	8.00%	0.00%
5-year ARM Jumbo	8.06%	up 0.37%	8.31%	up 0.28%
3-year ARM Jumbo	—	0.00%	—	0.00%

Key Takeaways from the Data:

• The standard 30-year fixed-rate mortgage is indeed up significantly.
• Adjustable-rate mortgages (ARMs) show mixed movement, especially in the Jumbo loan category, demanding extra caution and meticulous review.
• Government-backed loans (FHA and VA) show a continued decrease, presenting a silver lining for eligible borrowers.

Comparing California to the National Average

It's worth noting that California mortgage rates today are 19 basis points higher than the national average rate of 6.70%. This might be due to factors specific to the California housing market, such as high demand, limited inventory, and a strong economy.

What Can You Do?

If you're in the market for a home in California, here are some steps you can take to navigate these rising rates:

• Shop Around: Don't settle for the first rate you see. Compare offers from multiple lenders to find the best deal.
• Improve Your Credit Score: A higher credit score can qualify you for a lower interest rate.
• Consider a Shorter Loan Term: While monthly payments will be higher, a 15-year mortgage can save you a substantial amount on interest over the life of the loan.
• Increase Your Down Payment: A larger down payment reduces the amount you need to borrow, which can lower your monthly payments and overall interest costs.
• Lock in Your Rate: If you find a rate you're comfortable with, consider locking it in to protect yourself from further increases.
• Talk to a Mortgage Professional: A mortgage broker or loan officer can guide you through the process and help you find the best loan for your situation. I've personally found their insights invaluable in navigating complex financial decisions.
• Consider Government Loan Programs: If eligible, explore FHA or VA loans as they may offer more favorable terms than conventional mortgages.

Fixed vs. Adjustable-Rate Mortgages: Weighing the Options

With rates fluctuating, you might be wondering about fixed-rate versus adjustable-rate mortgages.

• Fixed-Rate Mortgages: Offer stability with an interest rate that remains consistent throughout the loan term. This is good for budgeting and predictability.
• Adjustable-Rate Mortgages (ARMs): Start with a lower interest rate that adjusts after a set period. While potentially saving money initially, they carry the risk of rate increases. You need to evaluate your risk appetite carefully.

The Importance of APR

As the data shows, the APR (Annual Percentage Rate) is crucial for comparing loans. It reflects the total cost of borrowing. It includes not only the interest rate, but also lender fees, points, and other charges. Focusing on APR provides a more accurate picture of the true cost of your mortgage.

Looking Ahead: What's Next for California Mortgage Rates?

Predicting future mortgage rates is difficult because numerous economic factors can influence the market.

• Keep an eye on inflation reports and the Federal Reserve announcement, as these often drive rate movements. Market signals now strongly suggest an 85-95% chance of a Federal Reserve rate cut at the September 16-17 meeting, according to tools like the CME FedWatch Tool.
• Monitor housing market trends in California, as strong demand can put upward pressure on rates.
• Don't panic! Mortgage rates fluctuate, and there are always opportunities for informed homebuyers to find favorable loans.

Final Thoughts: The jump in California mortgage rates today, highlights the importance of staying informed and prepared when navigating the home-buying process. By understanding the factors influencing rates, exploring your options, and working with experienced professionals, you can make informed decisions and achieve your homeownership goals. Good luck!