December 2022 mortgage rates are near their best levels since September as inflation fears ease heading into the final month of 2022. The downward trend started back in November when the CPI report came in weaker than expected, and from there, bond markets started to rally.
If you are buying a home or refinancing a current mortgage, now is one of the best times to lock in a rate. December 2022 mortgage rates are lower, and that might not be the case in early 2023.
Opportunities And Risks For December 2022
One of the best opportunities to lock in a lower rate and better terms is happening in December. When looking at November, October, and parts of September, mortgage rates are very attractive, but there are risks!
Like last month, December 2022 mortgage rates will be heavily impacted by the Fed meeting and the CPI report (both happen mid-December). If the CPI report is what the market expects (or better) and the Fed raises rates by a .25% – .50%, that might be viewed as a positive for mortgage rates.
However, if the opposite happens, we could see December 2022 mortgage rates move higher. As always, if there is a rate/term that makes sense, always lock it in. The market is too volatile to take a chance.
Here Are The Updated Conforming Loan Limits In California 2023
The Federal Finance Housing Agency (FFHA) just updated the 2023 conforming loan limits. The 2023 conforming loan limit in California is $726,000 for most counties. For some high-cost counties, it is $1,089,300.
December 2022 Mortgage Rate Forecast For California
Here are our latest December 2022 mortgage rate forecasts for California:
- 30-year fixed rates below 5.25%
- 20-year fixed rates below 5.00%
- 15-year fixed rates below 4.75%
Our December 2022 mortgage rate forecast is based on properties in California, a loan amount of $350,000, a primary home, excellent credit (740 or higher credit score), and a Loan-To-Value ratio below 60% (purchase transactions).
We may see days in which mortgage rates spike higher however, overall, we believe there will be opportunities to lock a mortgage rate at or below these levels throughout the month of December.
Mortgage Rate And Payment Chart
Here is a quick reference guide to December 2022 mortgage rate possibilities in California (these are not quotes; just examples) and the payments associated with each level based on various conforming loan amounts. See our important disclosure below.
30-Year Fixed-Rate Mortgage:
| Term | Loan Amount | Mortgage Rate | Payment |
| 30-year fixed | $320,000 | 5.00% | $1,717.83 |
| 30-year fixed | $420,000 | 5.00% | $2,254.65 |
| 30-year fixed | $520,000 | 5.00% | $2,791.47 |
| 30-year fixed | $620,000 | 5.00% | $3,328.29 |
20-Year Fixed-Rate Mortgage:
| Term | Loan Amount | Mortgage Rate | Payment |
| 20-year fixed | $320,000 | 4.75% | $2,067.92 |
| 20-year fixed | $420,000 | 4.75% | $2,714.14 |
| 20-year fixed | $520,000 | 4.75% | $3,360.36 |
| 20-year fixed | $620,000 | 4.75% | $4,006.59 |
15-Year Fixed-Rate Mortgage:
| Term | Loan Amount | Mortgage Rate | Payment |
| 15-year fixed | $320,000 | 4.50% | $2,447.98 |
| 15-year fixed | $420,000 | 4.50% | $3,212.97 |
| 15-year fixed | $520,000 | 4.50% | $3,977.97 |
| 15-year fixed | $620,000 | 4.50% | $4,742.96 |
Important Disclosure For December 2022 mortgage rates: The above is not a mortgage rate quote, nor is it an offer to lend. It’s only a generic example of various mortgage rates, loan amounts, and payments. Our mortgage rate chart is meant to educate and inform our readers. The current December 2022 mortgage rate market may be higher or lower than the examples listed in these mortgage rate charts. Also, mortgage rates can and often do adjust multiple times a day.
California Mortgage Calculator
Using a mortgage calculator to figure out your monthly payment is an essential part of buying a home in California or refinancing a current mortgage. Use our free mortgage calculator to help you determine what you can afford.
With our online mortgage calculator, you can also factor in your property tax amount along with your annual homeowner’s insurance amount with your monthly mortgage payment.
Our California mortgage calculator is free and easy to use.
And our mortgage calculator is especially helpful for those who want to impound their property taxes and property insurance into their monthly mortgage payment. If you have any questions about or California mortgage calculator, please don’t hesitate to ask.
Update Mortgage Guidelines December 2022
There are no significant changes to guidelines this month.
Economic Calendar For December 2022
Here we cover the daily economic events that might impact December 2022 mortgage rates. After the report comes out, we’ll update the post with that information and comment on if there is a potential impact on the Mortgage-Backed Securities market and consumer mortgage rates.
To start things off, we have the following reports:
- ISM Manufacturing report
- ADP Employment
- ISM Non-Manufacturing PMI
- BLS Employment report
Thursday – December 29th:
- Unemployment Claims: Weekly unemployment claims came in at 225,000, and continued claims came in at 1,710,000.
Thursday – December 22nd:
- Unemployment Claims: Weekly unemployment claims came in at 216,000, and continued claims came in at 1,672,000.
Wednesday – December 21st:
- MBA Purchase Index: The MBA Purchase Index came in at 182.5.
- MBA Refinance Index: The MBA Refinance Index came in at 371.4.
Thursday – December 15th:
- Unemployment Claims: Weekly unemployment claims came in at 211,000, and continued claims came in at 1,671,000.
Wednesday – December 14th:
- MBA Purchase Index: The MBA Purchase Index came in at 182.6.
- MBA Refinance Index: The MBA Refinance Index came in at 350.5.
- Fed Decision: As expected, the Fed raised a .50% however, the bond market rallied after the news release. The statement from the Fed was hawkish, so it was a positive surprise to see the market rally.
Tuesday – December 13th:
- Consumer Price Index (CPI): The CPI report came in softer than the market was anticipating. Month/Month CORE CPI came in at 0.2%, and the market was expecting 0.3%. Annual CORE CPI came in at 6.00%, and the market was expecting 6.10%.
Thursday – December 8th:
- Unemployment Claims: Weekly unemployment claims came in at 230,000, and continued claims came in at 1,671,000.
Friday – December 2nd:
- Employment Report: The market was expecting an increase of 200,000, and the report came in at 263,000 jobs that were created last month. The Unemployment rate moved to 3.70%, and earnings came in at 0.6% (higher than the market was expecting).
Thursday – December 1st:
- ISM Manufacturing PMI: Last month, the ISM Manufacturing PMI report came in at 50.2, and this month it came in at 49.00. December 2022 mortgage rates remained stable post-report.
- Unemployment Claims: Weekly unemployment claims came in at 225,000, and continued claims came in at 1,608,000.
- CORE PCE: The CORE PCE report is the main inflation report for the Fed. This month the report came in at 5.0, which is what the market was expecting.
December 2022 Mortgage Rates In California – Average
We’ll update this section as we move further into December however, to start off the month, we’re seeing the following averages.
- The average 30-year fixed mortgage rate is 5.25%.
- The average 20-year fixed mortgage rate is 5.00%
- The average 15-year fixed rate is 4.875%.
This is an average of the December 2022 mortgage rates of everyone we’re seeing, from less-than-perfect credit to excellent credit. Please keep in mind that mortgage rates adjust daily, sometimes multiple times during the day. For a mortgage quote specific to your situation, please be sure to contact us directly.
Mortgage-Backed Securities & Treasury Snapshot
December 1st – December 9th:
Mortgage-Backed Security UMBS 5.0 started trading at the 100.19 level, and the UMBS 5.5 coupon started at the 101.63 level. The 10y Treasury yield was at the 3.50 level.
At the end of the week, Mortgage-Backed Security UMBS 5.0 was at the 99.30 level, and the UMBS 5.5 coupon was nearing the 100.81 level. The 10y Treasury yield was at the 3.589% level.
December 12th – December 16th:
Mortgage-Backed Security UMBS 5.0 started trading at the 100.73 level, and the UMBS 5.5 coupon started at the 99.25 level. The 10y Treasury yield was at the 3.613% level.
At the end of the week, Mortgage-Backed Security UMBS 5.0 was at the 101.58 level, and the UMBS 5.5 coupon was nearing the 100.41 level. The 10y Treasury yield was at the 3.488% level.
December 19th – December 23rd:
Mortgage-Backed Security UMBS 5.0 started trading at the 99.77 level, and the UMBS 5.5 coupon started at the 101.09 level. The 10y Treasury yield was at the 3.59% level.
At the end of the week, Mortgage-Backed Security UMBS 5.0 was at the 99.11 level, and the UMBS 5.5 coupon was nearing the 100.69 level. The 10y Treasury yield was at the 3.75% level.
December 27th – December 30th:
Mortgage-Backed Security UMBS 5.0 started trading at the 98.84 level, and the UMBS 5.5 coupon started at the 100.53 level. The 10y Treasury yield was at the 3.847% level.
At the end of the week, Mortgage-Backed Security UMBS 5.0 was at the 98.48 level, and the UMBS 5.5 coupon was nearing the 100.11 level. The 10y Treasury yield was at the 3.879% level.
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