In the 2010s, mortgage rates averaged only 4.08% – but today’s rates are still a bargain compared to the 1970s (9.03%), the 1980s (12.7%) and the 2000s (6.29%).

TAMPA, Fla. – Unless you plan on purchasing real estate with an all-cash offer, you’ll likely be taking out a mortgage loan. It’s never a bad idea to be aware of mortgage rates, which can be ever-changing due to various factors – inflation, economic growth, Federal Reserve policies, the bond market and relevant housing market conditions, among them.

Extra Space Storage, a U.S. real estate storage owner and operator, examined historical mortgage data from federal loan purchaser Freddie Mac to find the average annual rate for a 30-year fixed-rate home loan, with data dating back to 1972.

A fixed-rate mortgage is a home loan that has a set interest rate for the entire lifetime of the loan. Typically, you’ll see 30- or 15-year fixed mortgage loans; the former mortgages are the most common type with about 90% of homebuyers using one in their home purchase.

Mortgage rates were highest in the 1980s when the Fed raised interest rates to combat inflation. Today, economic uncertainty and inflation are also behind rising mortgage rates. As of May 2022, the 30-year fixed mortgage rate sits at 5.25% while the average 15-year fixed mortgage rate is 4.43%.

So, what were they like 5 to 10 years ago? Keep reading to see how mortgage rates have changed since the early ‘70s.

Mortgage rates since 1972

For the first time in over a decade, mortgage rates have increased. In April 2022, 30-year fixed mortgage rates rose above 5%. After dropping to historic lows during the height of the COVID-19 lockdowns – when the rate hovered at 3.2% – this upward trajectory has dampened many would-be buyers’ enthusiasm.

However, mortgage rates are now relatively low in comparison to the historical average of around 8%. The early 1980s set records for the highest mortgage rates, jumping above a staggering 16% at one point.

1970s – Average 30-year fixed mortgage rate over the decade: 9.03% ....More