10/12/2026
Here’s some perspective on where rates have been compared to where we are now.
🏠In 1981, the average 30-year mortgage rate was 16.64%. Forty years later, in 2021, it was 2.96%.
Every year in between is on this card, averaged from Freddie Mac's weekly mortgage survey, which has tracked rates since April 1971.
The red years tell the story of the late 1970s and 1980s. From 1979 through 1990, the yearly average never fell below 10%.
The blue years are the stretch most recent buyers remember. For most of the 2010s, rates sat under 4%, and in 2020 and 2021 they dropped close to 3%.
Since 2023, the average has settled between about 6.4% and 6.8%, which is close to where it was in the early 2000s and lower than in any year from 1971 through 1999 except 1998.
Each number is the average for a 30-year fixed loan with 20% down to a borrower with good credit. Your own rate also depended on your credit score, the points you paid, whether you had an FHA, VA, or adjustable loan, and the week you locked.
My own view: the rate gets the attention, but the bigger difference is the home price. A rate can be refinanced later if rates fall and the closing costs make sense. The price you paid stays with you, and it sets your down payment, the size of the loan, and usually your property tax.
If you bought or refinanced in a year shaded red and still have that loan, compare it with this year's average, after the cost of closing a new loan.
What year did you buy your first home, and what rate did you get?
P.S. Once a week, I email the best money article I read, with my take on this week's top Facebook posts and what's new on the Ways to Wealth blog. It's free, and you can sign up on the Ways to Wealth home page.
R.J. Weiss, CFP®
The content shared here is for educational and informational purposes only. It is not personalized investment, tax, legal, or financial advice. Consult a licensed professional before making decisions based on your specific situation.
