Timing matters when applying for a mortgage, especially in a competitive state like California. While most people assume spring and summer are the ideal times to buy, the holiday season—especially around Christmas—can offer advantages that are often overlooked. If you’re considering applying for a mortgage during this time, it’s important to understand how the season affects rates, seller behavior, inventory, and lender availability.

At LBC Mortgage, we’ve helped many clients secure their homes during the holidays. The key is knowing what to expect and how to use the season to your advantage.

California’s real estate market slows down in winter, and Christmas is typically one of the quietest times of the year. Many sellers pause listings or wait for the new year to re-enter the market. Families are focused on the holidays, kids are on school break, and fewer open houses take place. As a result, the number of active listings drops compared to spring and summer.

But fewer listings don’t mean fewer opportunities. While there are fewer homes available, the buyers who stay active tend to face less competition. This shift creates a market dynamic that can benefit serious buyers who are ready to move forward.

Buyer Competition Decreases

Many buyers hit pause during the holidays, assuming there won’t be enough inventory or time to close before year-end. But this drop in activity means fewer competing offers. You’re less likely to face bidding wars or rushed decision-making. In high-demand areas of California, that kind of breathing room is rare.

We’ve seen clients succeed in getting better pricing or more favorable terms during the holidays than they might during peak season.

Sellers May Be More Motivated

When a home is listed during the holidays, there’s usually a reason. The seller might be relocating for a job, facing financial pressure, or trying to close by the end of the year for tax reasons. These sellers are often more open to negotiation. Buyers who apply for a mortgage and make a strong offer during this time can gain the upper hand.

A motivated seller may be more flexible on price, contingencies, or closing dates. That’s a win if you’re ready to act quickly.

The Role of Mortgage Lenders During the Holidays

A common concern is whether lenders slow down during the holidays. The answer is yes and no. While some institutions may operate with reduced staff, many mortgage brokers, including LBC Mortgage, continue to process loans actively in December. In fact, the reduced volume can actually help speed things up.

Lenders Have More Time for Each Application

With fewer applications in the pipeline, loan officers, underwriters, and processors often have more time to focus on each file. This can lead to quicker turnaround times on approvals, especially if your financial documents are ready. At LBC Mortgage, we use this period to give clients more personalized service and move files through efficiently, even when other companies slow down.

Appraisals and Inspections May Be Delayed

One challenge to be aware of is the availability of third-party services like home inspections, appraisals, or title work. These professionals may take time off around Christmas, which could slow the process. The key is to plan ahead. Starting your application early in December increases your chances of closing smoothly before the end of the year.

If you’re flexible on your closing date and work with a broker who can coordinate the timeline, you’ll be better positioned to avoid delays.

Interest Rates Don’t Follow a Holiday Schedule

Another reason buyers consider applying around Christmas is the chance to lock in a good rate. However, mortgage rates are driven by economic trends, not holidays. They can rise or fall depending on inflation, Federal Reserve policy, and investor demand for mortgage-backed securities.

What Rates Look Like in December

As of December 2025, California mortgage rates are averaging around 6.125% for a 30-year fixed loan and 5.5% for a 15-year loan. These rates are subject to change, but applying during a slower season does not guarantee a better deal. It’s more about your timing and financial readiness than the calendar.

That said, if rates drop unexpectedly during the holidays, being prepared to apply can allow you to act fast and lock in a lower rate. That’s one of the benefits of working with an experienced broker who watches the market closely and helps you make timely decisions.

Your Financial Readiness Comes First

No matter when you apply, your mortgage approval depends on your financial picture. The holiday season doesn’t change the lender’s requirements. You still need a solid credit score, steady income, manageable debt, and enough savings for your down payment and closing costs.

Pre-Approval Matters More Than Ever

Getting pre-approved during the holidays is smart. It shows sellers you’re serious and financially prepared, which makes your offer stronger—especially if they’re trying to close quickly. At LBC Mortgage, we help you get pre-approved fast and guide you through your budget, interest rate options, and closing costs so there are no surprises.

Why Work With a Local California Mortgage Broker

Applying for a mortgage during the holidays isn’t just about timing—it’s also about who you work with. At LBC Mortgage, we specialize in helping California buyers navigate the unique conditions of the local market, including the seasonal slowdown.

We don’t just help you find a loan. We help you understand what’s happening in your market, how to prepare your finances, and how to submit an offer that’s competitive and realistic.

Personalized Support When You Need It Most

Big banks may reduce staffing or shift to automated services during the holidays. But at LBC Mortgage, we remain hands-on with every client. Whether it’s running rate scenarios, answering questions about paperwork, or coordinating with agents and escrow officers, we’re committed to making the process smooth—no matter the season.

Our experience with California’s year-end market trends helps you make smart decisions, especially when timing is critical.

Should You Apply for a Mortgage at Christmas?

Yes, applying for a mortgage at Christmas in California can be a smart move—if you're financially prepared and understand how to navigate the seasonal market. Lower competition, motivated sellers, and faster lender response times are real advantages. But you’ll still need to be ready with your credit, income, and down payment in order.

The holiday season isn’t a shortcut to homeownership, but it can offer strategic benefits if you’re ready to act. The key is to work with professionals who know the market and can help you take full advantage of the timing.

If you're thinking about buying a home this Christmas, reach out to LBC Mortgage. We’ll walk you through the process, help you get pre-approved, and guide you every step of the way—so you can start the new year in a home you love.