Riverside, California is currently a seller's market where almost 45% of homes were sold above the asking price last month.
A seller's market refers to when there are more home buyers than homes on the market. Sellers can get away with overpricing homes because the demand is high.
This is bad news for buyers, but the amount you pay monthly will depend on mortgage rates. Keep reading to learn about mortgage rates in California now.
Mortgage Rates in California Right Now
The current mortgage interest rates in California are about 7.3% for a 30-year fixed mortgage and 6.9% for a 15-year fixed mortgage.
Mortgage rates continue to increase in the state making affordability a challenge for California buyers. Refinancing a mortgage is also not a great option as mortgage rates continue to elevate.
You can see how much you would have to pay monthly using the average mortgage rates with this mortgage calculator.
Mortgage rates aren't easy to predict, but you can get an idea of what to expect by learning about past trends.
California Mortgage Rate Trends
The pandemic caused mortgage rates to hit record lows in 2021, but they have risen at an increased rate since then. In September 2023, mortgage rates reached their highest levels since 2000 in California and nationally.
Because California is home to vibrant economies with mountains and beaches, the state has some of the most expensive houses in the nation.
Affordability continues to be a challenge, but homeowners may benefit from outsized appreciation.
California mortgage rates show no signs of slowing down soon based on recent trends in the real estate market.
Mortgage Options in California
Home financing is a great way to afford the more expensive homes in Riverside, California. There are various mortgage rate options to choose from, but these are the most common types of loans:
Buying real estate with conventional mortgages requires comparing mortgage rates to find the best option for your needs.
Mortgage rates will vary depending on your financial situation and the area you are buying a home in. The requirements for approval also depend on your lender.
The California Housing Finance Agency (CalHFA) offers California residents access to mortgages and smaller loans. This program is designed to help with closing costs and down payment costs.
Interested parties must contact a CalHFA-approved lender to start the application process.
The Federal Housing Administration (FHA) offers home loans throughout the United States. You can find a mortgage through an FHA-approved lender in your state.
These types of mortgages are for first-time buyers and repeat buyers. If you have a lower credit score and low to moderate income, this is a great mortgage option.
Get Help With Quality Buyer Services
Purchasing a home is one of the biggest financial decisions you will make. Because mortgage rates are so high, it's getting harder to find affordable homes in California.
With the help of quality buyer services at PMI Riverside, we can help you create a budget, find your dream home, and secure financing.
Our property management team stays up to date on the market to help buyers like you make knowledgeable buying decisions. Contact us today to learn more about our realty services.