Are mortgage rates high?

Mortgage rates in the United States have experienced significant fluctuations over the last 50 years. Tracking 30-year fixed-rate mortgages, Freddie Mac data shows the highest rates occurred in 1981 with weekly rates peaking at 18.63% in October of that year. However, an average or median calculation for a similar decades long time period would put mortgage rates closer to 7.5%.

The 2008 financial crisis prompted the Federal Reserve to cut rates, making borrowing more affordable. A notable historical trend saw rates plummet to their lowest points during the COVID-19 pandemic, with a weekly low of 2.65% in January 2021 and an annual average of 2.96% in 2021. However, since March 2022, rates have risen. So are mortgage rates high? The answer to that question is realtive to when you began monitoring rates. And a mortgage rate, is just one factor to consider as you weigh the pros and cons of purchasing a home now. Click here to learn more.