Mortgage Rate History: 1970s To 2025

The residential mortgage as we know it today is less than a century old. In fact, until the Federal Housing Administration (FHA) was established in 1934, only one in 10 Americans even owned a home. That all changed with the introduction of the 30-year fixed-rate mortgage during the Great Depression, which made homeownership possible for millions.

Mortgage rates over time

• Average 30-year fixed mortgage rate by year

  Here is a timeline of the average 30-year fixed mortgage rate by year. Bankrate first began aggregating rate data in 1982; all data prior was sourced from Freddie Mac. The 2026 average is through Jan. 28.

  *Freddie Mac rate data
  Year	30-year fixed-rate average
  2026	6.21%
  2025	6.66%
  2024	6.90%
  2023	7.00%
  2022	5.53%
  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	16.06%
  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%*

Current mortgage rates

For December and January, Bankrate’s average mortgage rates have been near the lowest levels since 2022. As of Jan. 28, the 30-year mortgage rate averaged 6.18%, according to Bankrate’s lender survey.

2020s mortgage rate trends

Entering 2020, the 30-year fixed-rate mortgage was already below 4%. Then the COVID-19 pandemic brought it to a record low, just under 3%.

By 2022, the Federal Reserve began raising its benchmark interest rate to cool pandemic-spurred inflation, and mortgage rates followed suit. Fast-forward to October 2023, and the 30-year mortgage rate broke through 8% — an average not seen since 2000.

For most of 2024, mortgage rates lingered in the 6s and 7s. The Fed pivoted back to rate cuts in September, October and December of that year. Despite the Fed’s cuts, mortgage rates rose from September 2024 into 2025.

In September, October and December of 2025, the Federal Reserve cut rates by 25 basis points each to total 75 basis points. Rates for the year drifted downward from 6.8%-7% to end the year at 6.25%.

2010s mortgage rate trends

In the 2010s, the 30-year mortgage rate trended downward, beginning in the 4% range, dipping below 4%, and ending the decade back in that range. These low rates were brought on in part by the Federal Reserve’s Great Recession-era policies.

2000s mortgage rate trends

Driven by the subprime mortgage crisis of the late 2000s, the 30-year mortgage rate tumbled from about 8% at the start of the decade down to 5.4% by 2009. At this time, the Federal Reserve implemented quantitative easing measures, buying mortgage bonds in bulk to drive down interest rates and usher in an economic recovery.

1990s mortgage rate trends

The 1990s saw a significant shift in the 30-year mortgage rate, which plunged to an average of 6.91% in 1998. This drop was brought on by the dot-com bubble, an era when investors rushed to buy stocks from overvalued technology companies. 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 follow the 10-year Treasury yield, also declined.

1980s mortgage rate trends

At the beginning of 1980, homes in the U.S. cost a median of $63,700, according to the Department of Housing and Urban Development (HUD). By 1990, that median had risen to $123,900. Spurred by the Great Inflation, the 30-year fixed mortgage rate reached a pinnacle of 18.4% in October 1981, according to Freddie Mac. Once the Fed reined in inflation, the 30-year rate seesawed down to the 9% range, closing the decade at 9.78%.

1970s mortgage rate trends

The average 30-year fixed-rate mortgage started the decade at about 7.5% in 1971 (the earliest year for which data is available), according to Freddie Mac. By 1979, the rate had risen to an average of 11.2%. During this decade, the Federal Reserve’s expansionary policy and other factors helped drive inflation and borrowing costs way up.

Mortgage rate predictions

While we can try to guess based on historical data, no one knows for certain what will happen to future mortgage rates over time — whether they’ll change at all, or when. Still, we regularly ask economists and other experts to weigh in. For week-to-week predictions, check out our mortgage rate poll. For a monthly look-ahead, read our latest mortgage rate forecast.

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. However, that demand as a result of lower rates also tends to drive up home prices, which can impact affordability even more so.

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.

While you should keep an eye on mortgage rates, avoid trying to time the market. A home is an investment, but it’s also where you live. In general, it’s best to get a mortgage when you can afford it and the timing is right for you.

Learn more: How mortgage rates are determined

How historical mortgage rates affect refinancing

When mortgage rates are on the rise, it might make less financial sense to refinance. 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, at least five years. If you plan to sell your home soon, the cost to refinance might not be worth it.