Mortgage Rates in Merced, California — March 2026
Updated March 2026 | Based on Merced market data and regional lending conditions
Merced is a growing city in California with a population of 83,982. The current 30-year fixed mortgage rate in Merced is 6.71%, which is 0.06% above the national average. With a median home price of $813,000 and a 20% down payment of $162,600, homebuyers can expect a monthly principal and interest payment of approximately $4,201.
Current Mortgage Rates in Merced, CA
Below are the current average mortgage rates available in the Merced area as of March 2026. Rates vary by lender, credit score, and loan-to-value ratio. Use our free calculator above to see your personalized estimate.
| Loan Type | Rate | National Avg | Difference |
|---|---|---|---|
| 30-Year Fixed | 6.71% | 6.65% | +0.06% |
| 15-Year Fixed | 5.96% | 5.89% | +0.07% |
| 5/1 ARM | 6.23% | 6.15% | +0.08% |
| FHA | 6.48% | 6.25% | +0.23% |
| VA | 6.23% | 6.05% | +0.18% |
| Jumbo | 6.96% | 6.85% | +0.11% |
Merced Housing Market Overview
The Merced housing market is competitive with prices well above the national median. The median household income in Merced is $86,700, and the cost of living index is 159.5 (national average = 100). Based on the 28% affordability rule, you would need an income of approximately $202,414 to comfortably afford the median-priced home in Merced, which exceeds the current median household income.
Monthly Payment Breakdown for Merced
Based on the median home price of $813,000 with 20% down ($162,600), here is what you can expect to pay monthly in Merced:
15-Year vs. 30-Year Mortgage in Merced
Choosing a 15-year mortgage in Merced at 5.96% instead of a 30-year at 6.71% would save you $527,040 in total interest over the life of the loan. However, your monthly payment would be $5,474 instead of $4,201 — an increase of $1,273 per month.
Calculate Your Merced Mortgage Payment
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Open Free CalculatorFrequently Asked Questions About Mortgages in Merced
What are the current mortgage rates in Merced, CA?
As of March 2026, the average 30-year fixed mortgage rate in Merced, California is 6.71%, while the 15-year fixed rate is 5.96%. FHA loans average 6.48% and VA loans 6.23%. These rates are 0.06% above the national average of 6.65%.
How much is a monthly mortgage payment in Merced?
Based on the median home price of $813,000 with 20% down, the estimated monthly mortgage payment in Merced is $4,201 for principal and interest. Including property taxes of $522/month, the total monthly housing cost is approximately $4,723.
What income do I need to buy a home in Merced?
Using the 28% rule, you would need an annual income of approximately $202,414 to afford the median-priced home in Merced at $813,000. The median household income in Merced is $86,700. This means most households would need to either earn above the median or consider homes below $813,000.
Is Merced a good place to buy a home in 2026?
Merced has a higher cost of living than average with a cost of living index of 159.5 (national average = 100). The property tax rate in California is 0.77%, which is below the national average. Merced has a population of 83,982 and offers a balanced lifestyle.
Mortgage Rates in Other California Cities
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Last updated: March 2026. Rates are approximate averages based on regional lending data for the Merced, California area. Individual rates may vary by lender, credit score, loan amount, and other factors. Use our free calculator for a personalized estimate.