Mortgage Rates History
How have mortgage rates changed over the decades? Explore the full historical context of US mortgage interest rates.
Recent Rate Trends
Mortgage Rate Trends
Data from FRED (Federal Reserve Economic Data). Weekly average rates.
Rates by Decade
| Decade | Avg 30-Year Rate | Context |
|---|---|---|
| 1970s | 8.86% | Rates began the decade around 7.3% and ended near 12% amid rising inflation. |
| 1980s | 12.70% | Peaked at 18.63% in October 1981 as the Fed fought inflation. Declined through the decade. |
| 1990s | 8.12% | Steady decline from 10% to around 7.5%. The decade saw a long economic expansion. |
| 2000s | 6.29% | Rates dipped below 5% briefly during the 2008 financial crisis as the Fed cut aggressively. |
| 2010s | 4.09% | Historic lows driven by quantitative easing and post-crisis recovery. Hit 3.31% in 2012. |
| 2020s | 5.30% | Record low of 2.65% in January 2021, then rapid rise to 7%+ in 2022-2023 as Fed hiked rates. |
What Drives Mortgage Rates?
Mortgage rates are primarily influenced by the bond market, especially the yield on 10-year US Treasury notes. When investors demand higher returns on bonds, mortgage rates rise.
The Federal Reserve indirectly affects mortgage rates through its federal funds rate and bond-buying programs. While the Fed does not set mortgage rates directly, its actions influence the broader interest rate environment.
Inflation expectations, employment data, GDP growth, and global economic conditions also play significant roles. In times of economic uncertainty, rates tend to fall as investors seek the safety of bonds.