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  • Writer's pictureGrant Hock

Mortgage Interest Rates

The history of mortgage rates in the United States has been one of steady decline, with rates reaching all-time lows in recent years. Prior to the Great Depression, mortgage rates in the United States were generally around 5%, but they began to rise during the 1930s as a result of the depression. By the 1950s, mortgage rates had reached an average of around 4%, and they remained relatively stable for the next several decades.

However, in the early 1980s, mortgage rates began to rise again, reaching an all-time high of over 18% in 1981. This was due in part to the Federal Reserve's efforts to combat inflation, which led to higher interest rates across the board.

Over the next several decades, mortgage rates gradually declined, reaching a low of around 3.5% in 2012. This decline was due in part to the Federal Reserve's efforts to stimulate the economy by keeping interest rates low.

In recent years, mortgage rates have remained near historic lows, with the average rate hovering around 3.5%. This has made it easier for many Americans to afford to buy a home, and has contributed to the strong housing market in recent years. Since 2020, mortgage interest rates in the United States have remained low, despite some fluctuation. In the early part of the year, rates dipped to near-record lows as the Federal Reserve continued its efforts to stimulate the economy in the face of the COVID-19 pandemic. This includes an all time low of 2.65% in July of 2021.

However, as the economy began to recover and inflation concerns grew, rates started to rise. As of December 2022, the average mortgage interest rate in the United States is still relatively low (compared to the last 30 years), at around 6.5%. While interest rates are higher than 2 years ago, they are still more affordable than most people realize.

Overall, the history of mortgage rates in the United States has been one of ups and downs, but in recent years, rates have been low comparatively. The average 30 year fixed rate mortgage for today is 6.63%.

If you are thinking of purchasing a home, please reach out! I work with some phenomenal lenders that I would be happy to connect you with. Happy Holidays all!

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