Recently, mortgage rates have been in a normal range in relationship to inflation
Mortgage interest rates since 1945 show a fascinating journey from the 4-5% range post-WWII, spiking dramatically in the late 70s/early 80s to over 18%, then generally declining to historic lows (around 2.65%) in 2021, before rising again, with major sources like Freddie Mac, FRED, and Bankrate offering charts detailing the 30-year fixed rate, revealing cycles driven by inflation, Federal Reserve actions, and economic conditions, with charts available via St. Louis Fed (FRED) and financial sites like The Mortgage Reports, US News, and Macrotrends.
Key Trends & Peaks:
- Post-War Stability (1940s-1960s): Rates hovered around 4-5% as the U.S. built up post-war, notes MIDFLORIDA Credit Union and Reddit.
- 1970s Inflation Surge: High inflation from oil crises pushed rates up, peaking near 11-12% by the decade's end, says Rocket Mortgage and US News.
- 1980s Peak: Volcker's Fed-induced recession to fight inflation sent rates soaring, reaching record highs of over 18% in 1981, notes Bankrate and US News.
- 1990s-2000s Decline: Rates gradually fell, breaking below 10% and reaching the 4-6% range, with dips.
- 2008 Crisis & 2020s Lows: Rates dropped to near-zero, hitting all-time lows around 2.65% in 2021 due to economic stimulus, but then climbed back up significantly by 2025.
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