California 30-year fixed conventional rates have been running in the mid-6% range (roughly 6.4%–6.6%), with 15-year fixed lower in the high-5% range and ARMs in between. The market has held fairly steady in a "mid-6%" band, kept there by persistent inflation and a Federal Reserve on hold. Rates change daily and vary by borrower — the numbers below are illustrative, not a quote. For today's live pricing, see our rates page or get a personalized quote.
| Loan type | Illustrative range* | Best for |
|---|---|---|
| 30-yr fixed | ~6.4%–6.6% | Lowest payment, long-term stability |
| 20-yr fixed | ~6.1%–6.3% | Faster payoff, moderate payment |
| 15-yr fixed | ~5.7%–5.9% | Lowest rate, fastest payoff |
| 7-yr ARM | ~6.4%–6.6% | Shorter ownership horizons |
*Illustrative ranges reflective of the California market around July 2026, shown to explain how loan types relate — not an offer or a rate quote. Your rate depends on your profile and the market that day.
On this page
What sets your conventional rate
Two borrowers can get very different rates on the same day. Here's what conventional lenders price on — and most of it you can influence:
| Factor | How it moves your rate |
|---|---|
| Credit score | The biggest lever. 740+ earns the best pricing; every tier down costs more |
| Down payment (LTV) | More equity = lower risk = better rate; 20%+ also removes PMI |
| Loan term | Shorter terms (15-yr) carry lower rates than 30-yr |
| Occupancy | Primary lowest; second home and investment price higher |
| Property type | Single-family lowest; condos and multi-unit can add to the rate |
| DTI | Lower debt load can help you qualify for better pricing |
| Loan amount | Very small and jumbo-adjacent loans can price differently |
| Points | Paying discount points buys the rate down (see below) |
Conventional loans use loan-level price adjustments (LLPAs) — risk-based tweaks Fannie Mae and Freddie Mac apply for factors like credit and occupancy. It's why credit matters more on conventional than on any other loan type, and why a strong file is rewarded so directly. See Requirements for the thresholds behind these.
What moves rates overall (the 2026 backdrop)
The market half of your rate is set by forces bigger than any one lender. In 2026, the picture has been one of stability at an elevated level:
- Inflation has stayed sticky — running higher than the Fed's 2% target, which keeps upward pressure on longer-term borrowing costs.
- The Federal Reserve has held its benchmark rate — it doesn't set mortgage rates directly, but its stance shapes the bond market that does.
- Mortgage rates track the 10-year Treasury and mortgage-bond market more than the Fed's headline rate, so they move on inflation data, jobs reports, and global events.
- Forecasters expect rates to stay above 6% for the near term, with the mid-6% band as the working assumption.
The practical takeaway: don't try to time the bottom. Buy or refinance when the numbers work for you, lock when you're comfortable, and refinance later if rates fall.
Conventional vs. other loan types on rate
Note rates across programs are often close — the real difference is in the total cost, especially mortgage insurance:
| Program | Rate vs. conventional | The catch |
|---|---|---|
| Conventional | Baseline | PMI under 20% down — but it cancels |
| FHA | Similar / sometimes lower | Insurance usually lasts the life of the loan |
| VA | Often lower | Eligible veterans only; funding fee |
| Jumbo | Varies — sometimes competitive | Stricter credit & reserves |
This is exactly where a broker helps: we quote conventional against the alternatives you're eligible for and compare the all-in cost — rate plus insurance plus fees — over the years you'll actually own. A lower headline rate isn't always the cheaper loan. See Pros & Cons for the conventional-vs-FHA math.
Points, locks & buydowns — the levers you control
Discount points
An optional upfront fee (1 point = 1% of the loan) that permanently lowers your rate. Worth it if you'll keep the loan past the break-even point where the monthly savings repay the cost. We'll calculate yours.
Rate lock
Guarantees your rate for a set window (often 30–60 days) while you close, protecting you from increases. In a steady-to-rising market, locking once you're under contract is usually the safe move.
There are also temporary buydowns (like a 2-1 buydown) that lower your rate for the first year or two — sometimes paid by a seller as a concession. Whether any of these make sense depends on your timeline and the deal; we'll run the numbers rather than guess.
How to get the best conventional rate
- Strengthen your credit first — even 20–40 points can move you to a better pricing tier.
- Put more down if you can — lower LTV means lower rate, and 20% removes PMI.
- Shop multiple lenders — Freddie Mac research shows comparing lenders can save over $1,000 a year. As a broker, we do this shopping for you in one application.
- Consider a shorter term — if the payment fits, 15-year rates run meaningfully below 30-year.
- Time your lock, don't time the market — lock when you're under contract and the number works.
- Keep your file clean — no new debt or credit inquiries while you're in process.
Conventional rate FAQs
What are conventional rates right now?
Around the mid-6% range for a 30-year fixed in California as of mid-2026, with 15-year lower. Rates change daily and vary by borrower — check live rates or get a quote for today's number.
What determines my rate?
Credit score, down payment (LTV), term, occupancy, property type, DTI, loan amount, and points — on top of the overall market. Strong credit and more equity earn the best pricing.
Are conventional rates lower than FHA?
Often similar on the note rate, but conventional PMI cancels while FHA insurance usually doesn't — so conventional is frequently cheaper long-term for good credit. See Pros & Cons.
What are discount points?
An optional upfront fee (1 point = 1% of the loan) that lowers your rate. Worth it if you keep the loan past the break-even point. We'll calculate yours.
Should I lock my rate?
A lock guarantees your rate for ~30–60 days while you close. In a steady or rising market, locking once you're under contract is usually the safer move.
Reviewed by the licensing team at Save Financial, a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766) founded in 2009 and serving all 58 counties from offices in Newport Beach and Marina del Rey.