Mortgage Interest Rates Over the Years

Mortgage Interest Rates Over the Years

Mortgage interest rates have gone up and down over the years. 

The average mortgage interest rate since 1972 up until 2022 has been 7.76% for a conventional conforming loan.

The average yearly high was in 1981 at 16.63% and the average yearly low was in 2021 at 2.96%.

Mortgage interest rates have made a fast increase from 2021, when they averaged 2.96%, up until today, in early 2023, when they are near 7.00%.

Although interest rates have made a recent sharp increase, they are still below the average when calculated from 1972, however, interest rates by themselves do not show the full picture about affordability.

They do not consider the price of homes, wages, inflation and debt, nor savings and available assets.

When deciding whether or not to purchase a home, one must consider their own financial position in order to make that determination.

Other factors to consider when determining whether or not to make a purchase may include the cost to close on any given property, anticipated costs for upgrades and maintenance, how long one intends to own the property, and potential financial benefits such as tax savings and growth of equity within the property.

Note that when the mortgage interest rates were going from the 9% range up to 16% in the late 1970s to the early 1980s, that inflation was in the outrageous range of 9% to 13.5%.

Also, note that in the mid 1970s to the late 1970s that there was an oil crisis caused by an embargo imposed by the OPEC nations against the United States because of its giving military aid to Israel.

Additionally, note that inflation during the 1970s shot up to near 12%, dropped down to around 5% then went back up to nearly 15%, before it began to stabilize in the mid to late 1980s.

Shown below are interest rates since 1972:

1972 ------------------------------ 7.38%

1973 -------------------------------- 8.04%

1974 ------------------------------------- 9.19%

1975 ------------------------------------ 9.05%

1976 ----------------------------------- 8.87%

1977 ---------------------------------- 8.85%

 1978 -------------------------------------- 9.64%

1979 -------------------------------------------- 11.20%

1980 ------------------------------------------------------- 13.74%

1981 ------------------------------------------------------------------- 16.63%

1982 ---------------------------------------------------------------- 16.04%

1983 ----------------------------------------------------- 13.24%

1984 ------------------------------------------------------- 13.88%

1985 -------------------------------------------------- 12.43%

1986 ----------------------------------------- 10.19%

1987 ----------------------------------------- 10.21%

1988 ------------------------------------------ 10.34%

1989 ------------------------------------------ 10.32%

1990 ---------------------------------------- 10.13%

1991 ------------------------------------- 9.25%

1992 ---------------------------------- 8.39%

1993 ----------------------------- 7.31%

1994 --------------------------------- 8.38%

1995 ------------------------------- 7.93%

1996 ------------------------------- 7.81%

1997 ------------------------------ 7.60%

1998 ---------------------------- 6.94%

1999 ------------------------------ 7.44%

2000 ------------------------------------ 8.05%

2001 ---------------------------- 6.97%

2002 -------------------------- 6.54%

2003 ------------------------ 5.84%

2004 ------------------------ 5.87%

2006 -------------------------- 6.41%

2007 -------------------------- 6.34%

2008 ------------------------ 6.04%

2009 -------------------- 5.04%

2010 ------------------- 4.69%

2011 ------------------ 4.45%

2012 --------------- 3.66%

2013 ---------------- 3.98%

2014 ----------------- 4.17%

2015 ---------------- 3.85%

2016 --------------- 3.65%

2017 ---------------- 3.99%

2018 ------------------ 4.54%

2019 ---------------- 3.94%

2020 ------------ 3.11%

2021 ------------ 2.96%

2022 ---------------------- 5.34%

2023 ---------------------------- 7.00% (yearly average still to be determined)

If you are considering making a purchase, feel free to contact me.  I can put you in touch with fair, reasonable, end experienced lenders who can provide you with the information that you will need to obtain a mortgage.

Ron Trzcinski --- Sachs Realty

410-935-5844 --- zenithret@gmail.com