California Mortgage Rates Are Reaching New Lows

Applying for a mortgage is one of the most important financial decisions you’ll make. Choosing the right time can help you save thousands over the life of your loan. Right now, several market trends are coming together to create a favorable environment for homebuyers in California. At LBC Mortgage, we believe this is an ideal time to act—and we’re here to help you take advantage of it.

Rates Have Dipped Below Recent Highs

After months of uncertainty and rising borrowing costs, mortgage rates in California are finally starting to ease. As of early September 2025, average rates for a 30-year fixed mortgage are sitting between 6.43% and 6.57%. These are some of the lowest rates we’ve seen all year.

For buyers, this shift makes a noticeable difference in affordability. Lower rates reduce monthly payments, increase purchasing power, and make qualifying for loans easier. If you’ve been waiting for the right time to lock in a competitive rate, this may be your best chance in months.

Small Rate Drops Have a Big Impact

Even a small dip in interest rates can result in major long-term savings. For example, dropping from 6.8% to 6.4% on a $600,000 loan could lower your monthly payment by over $150. That’s money you can redirect toward home improvements, savings, or other goals. When rates are trending downward, getting pre-approved early puts you in a stronger position to act fast when you find the right home.

The Market Favors Buyers Right Now

More Homes Are Available

Across California, housing inventory is rising. More properties are on the market than there have been in over a year. Nationally, inventory is up more than 15% compared to this time last year. In practical terms, this means buyers have more choices and more leverage. You’re not competing with dozens of other offers on every home, which gives you the upper hand when negotiating.

Fewer Buyers Means Less Competition

While inventory is climbing, demand is staying relatively soft. High rates earlier in the year kept many would-be buyers on the sidelines. As a result, there are now more sellers than active buyers in the market. Realtor.com reports a significant gap—more than 36% more listings than buyers—creating a rare moment of balance in a traditionally fast-paced market like California.

This buyer-friendly environment won’t last forever. As rates stabilize or drop further, more buyers will re-enter the market, bringing back competition and pushing prices higher. Acting now allows you to shop without pressure and negotiate more favorable terms with sellers.

Rate Forecasts Suggest Modest Changes Ahead

Experts Predict Stable or Slightly Lower Rates

Several major housing and economic organizations have released mortgage rate forecasts through the end of 2025. Most agree that rates will stay in the mid-6% range. While further rate drops are possible, they are expected to be minor—likely just a few tenths of a percentage point. For example:

  • The National Association of Realtors expects rates to hover around 6.7%
  • Fannie Mae projects a slight drop to 6.4% by year-end
  • The Mortgage Bankers Association anticipates similar numbers, around 6.7%

These projections suggest that today’s rates are close to what we’ll see through the remainder of the year. Waiting for a dramatic drop may only delay your ability to buy, with little to gain.

Refinancing Later Remains an Option

One of the smartest strategies in a stable rate environment is to buy now and refinance later. If rates do fall significantly in the future, you’ll be in a position to refinance your mortgage and take advantage of lower payments. But in the meantime, you’ll already be building equity and enjoying the benefits of homeownership.

We help clients plan with flexibility in mind. Our team can show you how different rate scenarios might affect your future options, so you feel confident in your choice.

The Seasonal Timing Favors California Buyers

Fall Offers Better Deals

Seasonal trends in California consistently show that September through November is one of the best times to buy a home. Fewer people are actively searching during the fall months, which leads to lower asking prices, longer days on market, and better chances of negotiating on closing costs or repairs.

Because school is in session and the holidays are approaching, many sellers are motivated to close quickly. This urgency works in your favor as a buyer. LBC Mortgage can help you get pre-approved quickly so you can move fast on opportunities that come up.

Sellers Are More Willing to Negotiate

In slower market conditions, sellers often become more flexible. We’ve seen more homeowners offer concessions like rate buy-downs, closing cost coverage, or upgrades to the home. These added benefits can make a real difference in your overall investment and reduce the cash needed to close.

When you work with us, we make sure your offer is not only competitive but also structured to give you the most value for your money. We communicate with real estate agents and sellers to uncover every opportunity to strengthen your position.

Why Working with LBC Mortgage Makes the Difference

Local Knowledge You Can Count On

We specialize in the California mortgage market. That means we understand how local trends impact your application and approval. Whether you’re buying in Los Angeles, San Diego, the Bay Area, or anywhere in between, we tailor our advice to match your location and goals.

We don’t rely on national averages or generic advice. Every pre-approval we issue is based on accurate, up-to-date California data—and your personal financial situation.

Faster Closings and Clear Guidance

Buying a home in California can move quickly. With our streamlined mortgage process, you’ll be ready to close on time without delays. We offer fast pre-approvals, clear communication, and direct access to a loan officer throughout your journey.

We also help you plan for the future. If you want to refinance later or upgrade your home in a few years, we’ll build a strategy that keeps your mortgage flexible and forward-looking.

More Options Than Traditional Banks

Unlike traditional banks, we’re a mortgage broker. That means we have access to a wide network of lenders and programs. Whether you’re a first-time buyer, self-employed, or need a jumbo loan, we’ll match you with the right solution.

If your credit isn’t perfect or your income is hard to document, we’ll guide you through your options. At LBC Mortgage, we’re focused on finding ways to say yes when others say no.