Hey there, I’m David Martinez, a 45-year-old real estate broker who’s been working the California housing scene for over 20 years. I grew up in Los Angeles—right off the hum of Wilshire Boulevard—and now call Pasadena home with my wife Elena, enjoying those San Gabriel Mountain views. If you’re wondering what a “good” interest rate is for a mortgage in California, you’re asking the right question in a state where the median home price is $829,000 as of April 2025 (California Association of Realtors). Rates matter big time here, and I’ve got the scoop from my decades helping folks buy homes. Let’s dive in.
What’s the Current Mortgage Rate Landscape in California?
As of April 2025, mortgage rates are hovering around 6.9% for a 30-year fixed loan, according to the latest from Bankrate. That’s the benchmark—national averages are close, but California’s high-cost market can nudge lender offers around a bit. Back when I started in 2003, rates were bouncing between 5.5% and 6.5%—lower than today, sure, but nothing like the sub-3% unicorn days of 2020. A “good” rate now isn’t about chasing history; it’s about what works for you in this moment. With prices sky-high—$1.2 million in the Bay Area, $900,000 in L.A. County—every decimal point shifts your monthly nut.
What Makes an Interest Rate “Good” for You?
Here’s the deal: a good rate depends on your situation—credit, down payment, loan type. Got a FICO score of 740+ and 20% down ($120,000 on a $600,000 condo in Sacramento)? You might snag 6.5%-6.7%, shaving $100-$200 off your monthly payment compared to 6.9%. My clients often ask me, “David, what’s the magic number?” I tell ‘em there’s no magic—just math. At 6.9% on $600,000 (20% down), you’re paying $3,169 monthly, principal and interest. Drop to 6.5%? That’s $3,038—$131 less. Over 30 years, that’s $47,000 saved. Good’s relative, but lower’s better.
How Does California’s Market Affect What’s “Good”?
California’s a beast—high demand, low inventory, insane prices. That 6.9% might feel steep when you’re borrowing $800,000 for a fixer-upper in Pasadena, but it’s “good” if it locks you into equity in a market that’s still climbing. Inland spots like Riverside or Fresno—$500,000 homes—make that rate more palatable; your payment’s $2,112 at 6.9% with 20% down. Compare that to 2006, when rates hit 6.8% but prices were half today’s. A good rate here balances affordability with the reality that waiting for 5% again might mean missing the boat as prices keep rising.
What Loan Types Offer the Best Rates?
FHA loans are my go-to for folks with so-so credit—580+ gets you 3.5% down, rates around 6.7%-6.9%. VA loans for vets? Often 6.5%-6.8%, no down payment—sweet deal if you qualify. Conventional loans at 6.9% need stronger credit (620+), but you avoid FHA’s mortgage insurance if you’ve got 20% down. Jumbo loans—over $1,209,750 in L.A.—creep to 7%+; riskier for lenders, pricier for you. I had a client in Santa Monica last year, 680 score, snag 6.6% on an FHA for a $650,000 condo—good for his budget. Your “good” rate hinges on what you can swing.
Are There Ways to Get a Better Rate in California?
You bet. Boost your credit—every 20 points can trim 0.1%-0.25%. Pay points—1% of the loan ($6,000 on $600,000) might drop 6.9% to 6.6%. Shop around—lenders vary; I’ve seen 0.5% swings between offers. Timing’s tricky—rates dipped to 6.65% in March per Freddie Mac, but 6.9% feels stable now. Lock when you’re happy; waiting’s a gamble. A couple in Pomona I worked with shaved 0.3% by cleaning up debt—saved ‘em $90 a month. Small moves, big wins.
What’s Too High—or Too Low—to Call “Good”?
Anything under 6.5% in 2025 is a steal—rare unless you’re a credit rockstar. Over 7%? Steep, especially on a $700,000 loan—$3,756 monthly vs. $3,314 at 6.5%. Too low—like 5%—sounds dreamy, but it’s not happening soon; economists peg rates easing to 6.5% by year-end, maybe. I tell clients, “If it fits your budget and locks you in before prices jump, it’s good.” California’s not forgiving—waiting for perfect can cost you a house.
David’s Two Cents on Nailing a Good Rate
After 20+ years, here’s my take: 6.7%-6.9% is “good” today—workable for most, especially with FHA or VA. Hustle your credit, save extra for points, and pounce when rates dip—spring’s been kind lately. I helped a family in Riverside grab 6.65% on a $450,000 place last month—felt like a win in this market. Between you and me, I’d kill for the 4% days, but 6.9% isn’t the end of the world—it’s California reality. Elena thinks I overanalyze rates, but it’s how I’ve kept folks in homes since ’03.
