The Top 10 High Interest Rates

1981 was the worst year for mortgage interest rates on record. The average mortgage rate was 16.63%, but that was just the average. For the week of October 9, 1981, mortgage rates averaged 18.63%, the highest weekly rate on record, and almost five times the 2019 annual rate. Rates fell in 2020 and 2021 mostly in response to the Coronavirus pandemic. Emergency actions by the Federal Reserve pushed mortgage rates below 3%. Over the 50year time span from 1971 to 2021, the lowest average 30-year rate was recorded in 2021 at 2.96%.

There’s been a lot of chatter lately about high interest rates. Which is understandable given the current increase from the past couple of years. There’s actually a number of interest rates out there, such as the prime rate, the discount rate, there’s the checking account interest rate, the savings account interest rate, the credit card interest rate, and the list goes on. For this article I would like to focus on the 30-year mortgage interest rate during the past 50 years. This seems logical to me simply because it has an effect on the estimated market values that we, as assessors, are responsible for.

The Top 10

Freddie Mac, considered a main industry source for mortgage rates, has been keeping records since 1971. Between April 1971 and December 2022, 30-year fixed rate mortgages averaged 7.76%. The current average 30-year mortgage rate for the week of December 1, 2022 is at 6.49%.

1981 was the worst year for mortgage interest rates on record. The average mortgage rate was 16.63%, but that was just the average. For the week of October 9, 1981, mortgage rates averaged 18.63%, the highest weekly rate on record, and almost five times the 2019 annual rate. Rates fell in 2020 and 2021 mostly in response to the Coronavirus pandemic. Emergency actions by the Federal Reserve pushed mortgage rates below 3%. Over the 50year time span from 1971 to 2021, the lowest average 30-year rate was recorded in 2021 at 2.96%.

Jamie Freeman, SAMA Hubbard County Editorial Committee Member

The following chart shows mortgage rate trends over the past five decades .

Average 30-Year Rates

The following lists the top ten highest average 30-year mortgage interest rates in the past 50 years.

Mortgage interest rates increased in 2022 due to a number of factors such as high inflation and a drawback on mortgage stimulus by the Fed. According to Freddie Mac’s records, the average 30 -year rate jumped from 3.22% in January to 7.08% at the end of Oc tober, while decreasing slightly to 6.49% on December 1, 2022.

It’s difficult to predict if mortgage rates will go back down again. Most sources suggest that if the Fed gets inflation under control or if the U.S. enters a significant recession, mortgage rates will likely come back down a little.

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