Mortgage Rates in Monterey, California — March 2026
Updated March 2026 | Based on Monterey market data and regional lending conditions
Monterey is a growing city in California with a population of 30,058. The current 30-year fixed mortgage rate in Monterey is 6.62%, which is 0.03% below the national average. With a median home price of $720,000 and a 20% down payment of $144,000, homebuyers can expect a monthly principal and interest payment of approximately $3,686.
Current Mortgage Rates in Monterey, CA
Below are the current average mortgage rates available in the Monterey 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 | 6.62% | 6.65% | -0.03% |
| 15-Year Fixed | 5.88% | 5.89% | -0.01% |
| 5/1 ARM | 6.17% | 6.15% | +0.02% |
| FHA | 6.43% | 6.25% | +0.18% |
| VA | 6.18% | 6.05% | +0.13% |
| Jumbo | 6.87% | 6.85% | +0.02% |
Monterey Housing Market Overview
The Monterey housing market is competitive with prices well above the national median. The median household income in Monterey is $75,800, and the cost of living index is 152.1 (national average = 100). Based on the 28% affordability rule, you would need an income of approximately $176,743 to comfortably afford the median-priced home in Monterey, which exceeds the current median household income.
Monthly Payment Breakdown for Monterey
Based on the median home price of $720,000 with 20% down ($144,000), here is what you can expect to pay monthly in Monterey:
15-Year vs. 30-Year Mortgage in Monterey
Choosing a 15-year mortgage in Monterey at 5.88% instead of a 30-year at 6.62% would save you $458,820 in total interest over the life of the loan. However, your monthly payment would be $4,823 instead of $3,686 — an increase of $1,137 per month.
Calculate Your Monterey Mortgage Payment
Use our free calculator to get a personalized estimate based on your loan amount, interest rate, and term.
Open Free CalculatorFrequently Asked Questions About Mortgages in Monterey
What are the current mortgage rates in Monterey, CA?
As of March 2026, the average 30-year fixed mortgage rate in Monterey, California is 6.62%, while the 15-year fixed rate is 5.88%. FHA loans average 6.43% and VA loans 6.18%. These rates are 0.03% below the national average of 6.65%.
How much is a monthly mortgage payment in Monterey?
Based on the median home price of $720,000 with 20% down, the estimated monthly mortgage payment in Monterey is $3,686 for principal and interest. Including property taxes of $438/month, the total monthly housing cost is approximately $4,124.
What income do I need to buy a home in Monterey?
Using the 28% rule, you would need an annual income of approximately $176,743 to afford the median-priced home in Monterey at $720,000. The median household income in Monterey is $75,800. This means most households would need to either earn above the median or consider homes below $720,000.
Is Monterey a good place to buy a home in 2026?
Monterey has a higher cost of living than average with a cost of living index of 152.1 (national average = 100). The property tax rate in California is 0.73%, which is below the national average. Monterey has a population of 30,058 and offers a balanced lifestyle.
Mortgage Rates in Other California Cities
Related Tools & Guides
Last updated: March 2026. Rates are approximate averages based on regional lending data for the Monterey, California area. Individual rates may vary by lender, credit score, loan amount, and other factors. Use our free calculator for a personalized estimate.