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Olga Zarytska/Adobe Stock/Illustration by Bankrate April 12, 2022 Checkmark Bankrate logo How is this page expert verified? At Bankrate, we take the accuracy of our content seriously. "Expert verified" means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced. Their reviews hold us accountable for publishing high-quality and trustworthy content. Ruben Çağınalp is an associate writer for Bankrate, focusing on mortgage topics. Suzanne De Vita is the mortgage editor for Bankrate, focusing on mortgage and real estate topics for homebuyers, homeowners, investors and renters. InstaMortgage (formerly Arcus Lending) CEO Shashank Shekhar is a top 15 loan officer and has been named the No. 4 broker in the country. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Our mortgage reporters and editors focus on the points consumers care about most — the latest rates, the best lenders, navigating the homebuying process, refinancing your mortgage and more — so you can feel confident when you make decisions as a homebuyer and a homeowner. Bankrate logo Editorial integrity
Bankrate follows a strict , so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Key Principles
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. Editorial Independence
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. While the you’ll get is determined by specific factors like your credit score, historical mortgage rate trends can give you a sense of how economic conditions influence the rates available on the market today. From the 1970s to present, mortgage rates have risen and fallen, with the current 30-year fixed rate still low, but on the rise. “After spiking to near 20 percent levels in the early 1980s, mortgage rates — as with interest rates in general — were largely in decline for the better part of the next 40 years as inflation declined and became a non-factor,” says Greg McBride, CFA, chief financial analyst for Bankrate. “Mortgage rates bottomed out in 2020 amid the pandemic-induced recession.” Historical mortgage rates
Overall, the annual average 30-year mortgage rate has trended downward since 1972, according to data from Freddie Mac’s . Mortgage rate trends in the 1970s
The 30-year fixed-rate mortgage started off the decade at about 7.3 percent in 1971, according to Freddie Mac. By the end of 1979, in a time of heightening inflation, that rate rose to 12.9 percent. While inflation doesn’t directly , if it rises too fast and wages don’t keep up, borrowers have less purchasing power overall. Mortgage rate trends in the 1980s
The 30-year fixed mortgage rate reached a pinnacle of 18.4 percent in October 1981, according to Freddie Mac, seesawing down to the 9 percent range by 1986 and closing the decade at 9.78 percent. The 1970s oil embargo against the U.S., which drove up inflation quickly, contributed to the increased borrowing costs. Mortgage rate trends in the 1990s
The 1990s saw a dramatic shift in the 30-year rate’s movement, as it plunged to an average of 6.91 percent in 1998, according to Bankrate data. This was spurred by the dot-com bubble, an era when investors rushed to buy stocks from technology companies that were overvalued. When these stocks plummeted, investors turned their focus to fixed-income investments, such as bonds. As bond prices rose and yields fell, mortgage rates, which , also declined. Mortgage rate trends in the 2000s
The 30-year rate took another tumble in the latter half of the 2000s when the housing market crashed due to the prevalence of subprime loans. According to Bankrate’s data, the average 30-year fixed mortgage rate dropped from about 8 percent at the start of the decade down to 5.4 percent by 2009, when the Federal Reserve implemented , buying mortgage bonds in bulk to drive down interest rates and usher in an economic recovery. Mortgage rate trends in the 2010s
The 2010s witnessed the 30-year mortgage rate continue to trend downward, beginning in the 4 percent range, dipping under the 4 percent mark and then ending the decade back in that range, Bankrate data shows. These rates were brought on in part by the Federal Reserve’s pull-back on bond-buying. Mortgage rates in the 2020s
2020 saw new lows for mortgage rates, with the 30-year fixed rate diving to just under 3 percent, according to Bankrate data, and averaging 3.38 percent for the year. Amid the pandemic, fearful investors were attracted to safer products such as Treasury and mortgage bonds, pushing yields — and rates — lower. Rates began to creep back up in 2021, but were ultimately tempered by COVID-19 variants. That has not been the case so far in 2022. “Mortgage rates have thus far staged the fastest and largest run-up in 28 years as inflation has soared to a 40-year high and the Federal Reserve is in the process of rapidly pivoting to a policy of tighter money and higher interest rates,” McBride says of this year, adding that rates will keep rising so long as inflation accelerates. You can view . How historical mortgage rates affect buying a home
Broadly speaking, lower mortgage rates fuel demand among homebuyers and can increase an individual’s buying power. A higher rate, on the other hand, means higher monthly mortgage payments, which can be a barrier for a buyer if the cost becomes unaffordable. In general, a borrower with a higher credit score, stable income and a sizable down payment qualifies for the lowest rates. How historical mortgage rates affect refinancing
With mortgage rates increasing, it might make less financial sense to try to refinance to a lower rate. Generally, it’s best to refinance if you can shave off one-half to three-quarters of a percentage point from your current interest rate, and if you plan to stay in your home for a longer period of time. If you plan to sell your home soon, the might not be worth it. Many homeowners, however, are sitting on high levels of equity, so consider exploring a . Shop around to find the lowest possible rate and fees based on your credit and finances, and be sure to lock your rate. Summary Historical mortgage rate trends
Over the last 50 years, mortgage rates have reached both peaks and valleys, from the high of 18 percent in the 1980s to today’s relatively low but increasing rates. Below is a summary of the average 30-year fixed mortgage rate by year: Sources: Bankrate, Freddie Mac Year 30-year fixed-rate average 2021 3.15% 2020 3.38% 2019 4.13% 2018 4.70% 2017 4.14% 2016 3.79% 2015 3.99% 2014 4.31% 2013 4.16% 2012 3.88% 2011 4.65% 2010 4.86% 2009 5.38% 2008 6.23% 2007 6.40% 2006 6.47% 2005 5.93% 2004 5.88% 2003 5.89% 2002 6.57% 2001 7.01% 2000 8.08% 1999 7.46% 1998 6.91% 1997 7.57% 1996 7.76% 1995 7.86% 1994 8.28% 1993 7.17% 1992 8.27% 1991 9.09% 1990 9.97% 1989 10.25% 1988 10.38% 1987 10.40% 1986 10.39% 1985 12.43% 1984 13.88% 1983 13.24% 1982 16.04% 1981 16.64% 1980 13.74% 1979 11.20% 1978 9.64% 1977 8.85% 1976 8.87% 1975 9.05% 1974 9.19% 1973 8.04% 1972 7.38% Learn more
SHARE: Ruben Çağınalp is an associate writer for Bankrate, focusing on mortgage topics. Suzanne De Vita is the mortgage editor for Bankrate, focusing on mortgage and real estate topics for homebuyers, homeowners, investors and renters. InstaMortgage (formerly Arcus Lending) CEO Shashank Shekhar is a top 15 loan officer and has been named the No. 4 broker in the country. Related Articles