Mortgage Rates: How They Have Changed Over Time

In 2020, we are fortunate to be experiencing mortgage rates that are at a historic low. Mortgage rates today make it easier for homeownership to become a reality. But, rates haven’t always been this low, and they might not continue down this path in the future. 

It’s good to take a look at past mortgage rates to see trends over the years. Looking back can also provide useful insight into the future. 

Keep reading to gain an understanding of mortgage rate history and how they have changed over time. 

Mortgage Rate History

Freddie Mac began surveying lenders for mortgage data in 1971. Looking at data of 30-year fixed rates since the 1970s, you will find that they have fluctuated greatly.

In the 1970s, the average mortgage rates ranged between 7.38% and 11.20%. There was a consistent increase due to what’s known as The Great Inflation. This was a period when the stock market crashed, unemployment increased, and inflation was seemingly out of control. 

In the 1980s, the average mortgage rates ranged between 10.21% and 16.64%. After the highest interest rate on record of 18.63% was reached in 1981, rates steadily fell and never rose near that level again. 

In the 1990s, the average mortgage rates ranged between 6.94% and 10.13%. The economy was relatively stable, so interest rates followed suit.

In the 2000s, the average mortgage rates ranged between 5.04% and 8.05%. After the housing crash of 2008, rates fell under 6% and haven’t risen above since. 

In the 2010s, the average mortgage rates ranged between 3.65% and 4.54%. The lowest interest rate on record was 3.31% in 2012. Rates are currently sitting at historically low levels.

Mortgage Rates Forecast For 2020

Today we continue to experience historically low interest rates. As of 2019, mortgage rates are at an average of 4%. 

At Arbor Financial Credit Union, our rates start below the national average.

Now is the time to take advantage of these low rates. While rates are low, homeownership is more affordable, so secure your low rate loan while you can.

Learn More About Home Mortgage Rates
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