Historical data · Updated May 2026
Mortgage rates by year
Annual average 30-year fixed mortgage rates in the US from 1971 to 2026. Source: Freddie Mac Primary Mortgage Market Survey (PMMS).
The headline numbers
- All-time peak: 16.63% (annual avg, 1981) — single weekly peak 18.45% Oct 1981
- All-time low: 2.96% (annual avg, 2021) — single weekly low 2.65% Jan 2021
- 55-year average (1971–2025): 7.25%
- Current (2026): ~6.85%
Annual average 30-year fixed mortgage rate
| Year | Avg rate | Context |
|---|---|---|
| 1971 | 7.54% | Freddie Mac PMMS begins |
| 1975 | 9.05% | Stagflation begins |
| 1980 | 13.74% | Volcker inflation fight |
| 1981 | 16.63% | Peak: 18.45% Oct 1981 |
| 1985 | 12.43% | Inflation breaking |
| 1990 | 10.13% | S&L crisis era |
| 1995 | 7.93% | Mid-90s normalization |
| 2000 | 8.05% | Dot-com peak |
| 2003 | 5.83% | Housing boom begins |
| 2006 | 6.41% | Housing peak |
| 2008 | 6.03% | GFC begins |
| 2010 | 4.69% | QE era starts |
| 2012 | 3.66% | Then-record low |
| 2015 | 3.85% | ZIRP plateau |
| 2018 | 4.54% | Fed hiking |
| 2020 | 3.11% | COVID emergency cuts |
| 2021 | 2.96% | All-time low: 2.65% Jan 2021 |
| 2022 | 5.34% | Rate shock begins |
| 2023 | 6.81% | Peak: 7.79% Oct 2023 |
| 2024 | 6.72% | Plateau, slight ease |
| 2025 | 6.85% | Sticky high rates |
Selected years. Full weekly series available from Freddie Mac PMMS.
What $300,000 mortgage costs at each era's rate
| Rate era | Rate | Monthly P&I | Total interest (30 yr) |
|---|---|---|---|
| 1981 peak | 16.63% | $4,184 | $1,206,000 |
| 1990s avg | 8.00% | $2,201 | $492,500 |
| 2010s avg | 4.10% | $1,449 | $221,800 |
| 2021 record low | 2.96% | $1,259 | $153,100 |
| 2026 current | 6.85% | $1,966 | $407,800 |
Why rates moved when they did
- 1980–1982 spike to 18%: Volcker-Fed inflation-fighting. CPI peaked at 14.6%; mortgages had to compensate.
- 1980s–1990s grind down: Inflation tamed, rates settled 8–10% — what would later be called the "great moderation."
- 2008–2015 collapse to 3.5%: Global Financial Crisis + QE 1/2/3. Fed bought mortgage-backed securities to push rates down.
- 2020–2021 record lows: COVID emergency Fed easing + massive MBS purchases drove rates below 3%.
- 2022 shock to 7%: Inflation surge + Fed reverse course. Rates moved 3% → 7% in 12 months — fastest move in modern history.
- 2023–2026 plateau: Inflation cooling but sticky. Fed cuts limited; mortgage spread to 10Y Treasury remains elevated.
Run your scenario
Calculate a payment at any of these historical rates with the mortgage calculator. Compare a refinance break-even with the refinance calculator. See the impact of extra payments with the mortgage payoff calculator.
Sources & methodology
- Freddie Mac Primary Mortgage Market Survey (PMMS) — weekly survey since 1971
- FRED MORTGAGE30US — Federal Reserve archive of PMMS data
- Annual averages computed as the simple arithmetic mean of weekly observations within each calendar year.
- Rates are for 30-year conventional conforming fixed-rate mortgages. Jumbo, FHA, VA, and ARM rates differ.
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Frequently asked questions
What was the highest mortgage rate ever?
The 30-year fixed mortgage rate peaked at 18.45% in October 1981 during the Volcker Fed's inflation-fighting campaign. Annual averages were 16.63% in 1981 and 13.74% in 1980. A $300,000 mortgage at 18% costs $4,519/month — vs $1,996/month at 7%.
What was the lowest mortgage rate in history?
The all-time low was 2.65% in the first week of January 2021, during the COVID emergency Fed easing. The full-year 2021 average was 2.96%. People who locked 30-year mortgages in 2020–2021 hold what's now called 'golden handcuffs' — the rate is so far below current market that they cannot afford to sell and re-borrow.
Why are mortgage rates higher than the Fed funds rate?
Mortgage rates track the 10-year Treasury yield (plus a 'mortgage spread' of typically 1.5–2.5%), not the Fed funds rate directly. The Fed influences short-term rates; mortgages are long-term debt priced off the 10-year. The mortgage spread widens during stress (2022–2023 saw spreads of 2.5–3.0% vs the historical 1.7% average).
What's a 'normal' mortgage rate historically?
The 1971–2025 average is roughly 7.7%. So today's 6.5–7% rates are actually near historical norm — the 2010s (3–4.5%) and 2020–2021 (under 3%) were the anomaly, driven by post-GFC and COVID Fed easing. Buyers anchored to 2021 rates are anchored to history's outlier.
Should I wait for rates to drop before buying?
Generally no — date the rate, marry the house. If rates drop, you refinance (refi cost typically pays back in 2–4 years on a 1% rate drop). If rates rise, you locked in. Time in the home matters more than timing the rate market, which professional traders cannot reliably do.