Historical data · Coverage 1971–2025
Mortgage rates by year
Annual average 30-year fixed mortgage rates in the US from 1971 through 2025. Source: Freddie Mac Primary Mortgage Market Survey (PMMS). Current lender quotes are separate from this historical table.
Quick answer: the selected annual averages range from 2.96% in 2021 to 16.63% in 1981. The lowest single weekly PMMS reading was 2.65% in January 2021, while the annual average and an individual lender quote answer different questions.
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
- Average of the selected years shown: 7.25% (not a full 1971-2025 series average)
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 a $300,000 mortgage costs at each era's rate
Illustrative principal-and-interest payments for a 30-year fixed loan, with monthly payments and no taxes, insurance, PMI, points or fees. Values are rounded; a lender quote can differ.
| Rate era | Rate | Monthly P&I | Total interest (30 yr) |
|---|---|---|---|
| 1981 peak | 16.63% | $4,187 | $1,207,300 |
| 1990s avg | 8.00% | $2,201 | $492,500 |
| 2010s avg | 4.10% | $1,450 | $221,900 |
| 2021 record low | 2.96% | $1,258 | $153,000 |
| 2025 annual average | 6.85% | $1,966 | $407,700 |
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 and tighter monetary policy pushed mortgage rates sharply higher; the weekly path is visible in the PMMS series.
- 2023–2025 plateau: Inflation cooling but sticky. Mortgage spreads remained elevated while rates stayed above the 2010s average.
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 were mortgage rates by year from 1971 to 2025?
The table lists selected annual averages for 30-year fixed conventional mortgage rates from 1971 through 2025, based on Freddie Mac PMMS weekly observations. Each annual average is separate from the single-week peak or low and from a current lender quote; loan type, borrower and market conditions affect an actual offer.
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 $4,521/month — vs $1,996/month at 7%, before taxes, insurance or PMI.
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 are influenced by longer-term Treasury yields, mortgage-backed-security pricing and lender margins, rather than tracking the Fed funds rate one-for-one. The Fed influences short-term rates, while individual mortgage pricing also depends on loan, borrower and market conditions. Use the PMMS history as a benchmark, not as a quote for a specific borrower.
What is a normal mortgage rate historically?
There is no single normal rate. The selected historical rows show much higher rates in the 1980s and unusually low rates in 2020-2021; compare the exact period, loan type and borrower assumptions before calling a current quote typical.
Should I wait for rates to drop before buying?
Do not assume a rate forecast will be right. Compare the payment, cash needed, affordability, expected time in the home, refinance costs and the risk that a future refinance may not be available. The mortgage calculator can model the rate and term you can actually qualify for.
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