It’s never a bad idea to be aware of mortgage rates, which can be ever-changing due to various factors.
For the first time in over a decade, mortgage rates have increased. In April 2022, 30-year fixed mortgage rates rose above 5%.
We'll go over each decade starting with the 1970s to compare how rates have changed over time.
During the 1970s, the Great Inflation was to blame for rising mortgage rates. The average rate was 9.03%.
An oil embargo following the Arab-Israeli War of 1973 worsened the inflation of the ’70s, pushing the U.S. into a recession. The average rate was 12.7%.
The 1990s allowed for the great moderation in interest rates accompanied by growth as the baby boomers entered their peak earning years. The average rate of 8.12%.
Thirty-year fixed mortgage rates showed a continual decrease during the 2000s, going from above 10% to the 5% range in just the first three years.