California mortgage rates February 2021 – refinance and purchase transactions. Heading into the first week of February mortgage rates remain somewhat stable however there are growing risks for mortgage rates to move higher. Two main reasons; more people are getting vaccinated which means the economy will start to return to “normal”.

The second is the expected passage of new COVID relief legislation which will infuse the economy with fresh new money ($1.9 trillion).

For 16 years my team and I have offered low mortgage rates, fast closings, and exceptional service throughout California. If you are looking to purchase a home in California or refinance a current mortgage please be sure to contact me directly (you can use the contact form below or call my direct number: 1-800-550-5538) for a no-cost/no-obligation quote.

Opportunities And Risks For February 2021

The opportunity for mortgage rates to move lower from current levels is minimal at best (significant equals more than a .25% improvement from current levels). We are already near-record-low mortgage rates and mortgage lenders are incredibly busy just trying to keep up the demand.

There is a risk (as mentioned above) that mortgage rates could move higher from these levels. What could push mortgage rates higher?

Besides the further expansion of the various COVID vaccines, a strong rebound in the economy. That has been and continues to be the biggest risk for mortgage rates to California homeowners.

February 2021 Mortgage Rate Forecast For California

Here are our latest February 2021 mortgage rate forecasts for California:

30-year fixed rates below 2.875%
20-year fixed rates below 2.75%
15-year fixed rates below 2.375%

This is based on properties in California, a loan amount of $325,000, 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 February.

Consumer Financial Protection Bureau

The Consumer Financial Protection Bureau is a great resource for consumers. On the CFPB’s website you can;

Learn more about what a Loan Estimate is
Educate yourself about the mortgage process
Discover what is acceptable and not acceptable in a mortgage transaction

We suggest our clients take some time to see what the CFPB has to offer. It’s a great resource, especially for First Time Home Buyers.

2021 Conforming Loan Amount California

Back in November 2020, the FHFA (the Federal Housing Finance Agency) delivered some big news to the market. They raised California Conforming loan limits for every county in California. The baseline limit increased to $548,250 and the jumbo-conforming loan limit increased to $822,375 (this is for “high cost” counties).

The 2021 conforming loan amount in California was raised for both agencies (Fannie Mae and Freddie Mac). This is a sizable increase from the 2020 limit of $510,400 baseline and in some high-cost counties, it was $765,600. Needless to say, this is a huge “win” for California homeowners.

February 2021 Mortgage Rate Chart

Here is a quick reference guide to February 2021 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	$225,000	2.625%	$903.71
30-year fixed	$325,000	2.625%	$1,305.36
30-year fixed	$425,000	2.625%	$1,707.01
30-year fixed	$525,000	2.625%	$2,108.67

20-Year Fixed Rate Mortgage:

Term	Loan Amount	Mortgage Rate	Payment
20-year fixed	$225,000	2.50%	$1,192.28
20-year fixed	$325,000	2.50%	$1,722.18
20-year fixed	$425,000	2.50%	$2,252.09
20-year fixed	$525,000	2.50%	$2,781.99

15-Year Fixed Rate Mortgage:

Term	Loan Amount	Mortgage Rate	Payment
15-year fixed	$225,000	2.25%	$1,473.94
15-year fixed	$325,000	2.25%	$2,129.03
15-year fixed	$425,000	2.25%	$2,784.11
15-year fixed	$525,000	2.25%	$3,439.20

Important Disclosure For February 2021 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 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.

February 2021 Mortgage Rate FAQ’s

Here we answer some popular questions about mortgage rates in California. For additional mortgage information visit our Scoop.it! page.

What Is The Best Mortgage Rate?

A great question that can have a different answer for different people. If you are someone that is planning to pay off your home and your 100% certain that you will not refinance again then the best mortgage rate for you might be a 15 year fixed, paying a point, and regular closing costs.

But if you are someone that’s not looking to pay off your home and there is a good chance you’ll refinance or move in the next 3-5 years you’ll probably want to go with a 30 year fixed rate that has little to no closing costs.

The best thing you can do is discuss your situation with the Loan Officer and see what he/she can come up with in terms of loan program options.

Are Mortgage Rates Higher In California?

Sometimes they are when compared to other states however not by much. Back in 2009, you did see mortgage rates jump for states like California (Florida is another example) due to the high number of foreclosures after the financial crisis.

Any differences now are usually minor and not significant.

Can You Use a Consumer Mortgage For A Four-Unit Rental Property?

Yes! 4-units is the maximum number of units, after that, it would be considered a commercial loan which is a very different process.

Update Mortgage Guidelines February 2021

There are no major updates to mortgage guidelines for the month of February.

Economic Calendar For February 2021

Here we cover the daily economic events that might impact 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:

ISM Manufacturing report
ADP Employment (sometimes comes out the day before the 1st of the month)
ISM Non-Manufacturing PMI
BLS Employment report

Thursday – February 25th:

Weekly Jobless Claims Report: We’re finally seeing a bit of improvement with the Weekly Jobless Claims report. Last week the report came in at 861,000 claims and this week it came in at 730,000 claims. Continued claims came in at 4,419,000.00.
Durable Goods: The Durable Goods report came in at 3.4% (expectations were for a 1.1% increase).
GDP Prelim: The preliminary GDP report came in at 4.1%.

Wednesday – February 24th:

MBA Purchase and MBA Refinance Index: The MBA Purchase Index came in at 264.9 and the MBA Refinance Index came in at 3848.1.

Tuesday – February 23rd:

CaseShiller Index: The year/year CaseShiller Index came in at 10.1% after last month’s reading of 9.1%.
Consumer Confidence: The Consumer Confidence report came in higher when compared to last month. The report came in at 91.3.

Friday – February 19th:

PMI Manufacturing (Markit): The PMI Manufacturing report from Markit came in at exceptions (58.5).

Thursday – February 18th:

Weekly Jobless Claims: The Weekly Jobless Claims report showed an increase in claims this week (when compared to last week). The report came in at 861,000 claims filed. Continued claims also increased to 4,494,000.
Philly Fed Index: The Philly Fed Index came in at 23.1 which is an increase from last month’s report of 20.00

Wednesday – February 17th:

MBA Purchase and Refinance: The Purchase Index came in at 299.5 and the Refinance Index came in at 43377.0.
Retail Sales: The Retail Sales report came in much stronger than expected 5.3% vs expectations of an increase of 1.1%). Mortgage rates moved higher post report.
National Association of Home Builders: The NAHB Index came in at 84.

Thursday – February 11th:

Weekly Jobless Claims: Last week the report came in at 779,000 claims and this week the report came in at 793,000 claims and the Continued Claims came in at 4,545,000. There was no impact to mortgage rates post report.

Wednesday – February 10th:

MBA Purchase and Refinance Index: Last week the Purchase Index came in at 334.6 and this week the report came in at 318.8. The Refinance Index came in at 4549.2 (last week it came in at 4746.2).
Consumer Price Index: The monthly CPI came in at 0.3% and lasts month’s report was lowered from 0.4% to 0.2%. Annual CPI came in at 1.4% after last month’s report of 1.6%. The report was favorable to both bond markets and consumer mortgage rates.

Friday – February 4th:

Monthly Jobs Report: Non-Farm Payrolls is expected to come in at 50,000 after last month’s dismal report of -140,000. Earnings are expected to increase 0.3% (last month they jumped 0.8%). The unemployment rate is expected to come in at 6.7%. Update: Non-Farms Payrolls came in at 49,000. The unemployment rate came in at 6.3%. The impact on mortgage rates was unclear as the bond market experienced some volatile trading post report.

Thursday – February 3rd:

Weekly Jobless Claims: The market is expecting the weekly Jobless Claims report to show 830,000 Americans filed a claim for unemployment in the most recent week. Continued claims are expected to come in at 4,700,000. Update: Jobless claims came in at 779,000.

Wednesday – February 2nd:

MBA Purchase and Refinance Index: Last week the Purchase Index came in at 334.2 and the Refinance Index came in at 4261.5.
ADP National Employment Report: Last month’s surprise report came in at -123,000 jobs which was a big surprise for the market. There was no immediate impact to mortgage rates however it was partially responsible for keeping mortgage rates steady. This month the market is expecting the jobs report to show a gain of 46,000 jobs. Update: The ADP report came in at 174,000 jobs created and the report had a negative impact on mortgage rates.

Monday – February 1st:

ISM Manufacturing PMI Jan: The ISM report came in at 60.0 and last month it came in at 60.7
Construction Spending Dec: In the previous report Construction Spending increased 0.9%, and this report showed a 0.9% increase as well.

Mortgage Rates And The Monthly Jobs Report

The monthly BLS jobs report can have a big impact on mortgage rates over the course of the month. A report that comes in line with expectations usually doesn’t but reports that come in significantly above or below expectations generally has some sort of impact in terms of the direction of mortgage rates.

During COVID that changed a bit in that the biggest driver on the bond market (and eventually it would reach consumer mortgage rates) was how the response to COVID was going.

With the end of the pandemic nearing the monthly jobs report may start to take on more of an important role in how lenders issue consumer mortgage rates.

February 2021 Mortgage Rate Average In California

We’ll update this section as we move further into February however to start off the month we’re seeing the following averages.

The average 30-year fixed mortgage rate in California is 2.625%.
The average 20-year fixed mortgage rate is 2.50%
The average 15-year fixed rate in California is 2.125%.

This is an average of everyone we’re seeing; from less than perfect credit to excellent credit. Please keep in mind that February 2020 mortgage rates adjust daily; sometimes multiple times during a day. For a mortgage quote specific to your situation please be sure to contact us directly.

Mortgage-Backed Securities & Treasury Snapshot

February 22nd – February 26th:

Mortgage-Backed Security UMBS 2.0 started the week at the 101.58 level and the UMBS 2.5 coupon started at the 104.25 level. The 10y Treasury yield was at the 1.35% level to start the week.

At the end of the week, Mortgage-Backed Security UMBS 2.0 was at the 100.36 level and the UMBS 2.5 coupon was nearing the 103.19 level. The 10y Treasury yield was at 1.46.

February 16th – February 19th:

Mortgage-Backed Security UMBS 2.0 started the week at the 102.80 level and the UMBS 2.5 coupon started at the 105.17 level. The 10y Treasury yield was at the 1.30% level to start the week.

At the end of the week, Mortgage-Backed Security UMBS 2.0 was at the 101.69 level and the UMBS 2.5 coupon was nearing the 104.33 level. The 10y Treasury yield was at 1.33%.

February 8th – February 12th:

Mortgage-Backed Security UMBS 2.0 started the week at the 102.97 level and the UMBS 2.5 coupon started at the 105.17 level. The 10y Treasury yield was at the 1.17% level to start the week.

At the end of the week, Mortgage-Backed Security UMBS 2.0 was at the 102.56 level and the UMBS 2.5 coupon was nearing the 104.89 level. The 10y Treasury yield was at 1.21%.

February 1st – February 5th:

Mortgage-Backed Security UMBS 2.0 started the week at the 103.06 level and the UMBS 2.5 coupon started at the 105.25 level. The 10y Treasury yield was at the 1.07% level to start the week.

At the end of the week, Mortgage-Backed Security UMBS 2.0 was at the 103.05 level and the UMBS 2.5 coupon was nearing the 105.23 level. The 10y Treasury yield was at 1.16%.

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