Mortgage rate history 1972-2026

What happened: Mortgage rates have been volatile over the past decade, with the average 30-year fixed rate peaking at over 16% in 1981 and bottoming at around 3.3% in 2020-2021. As of April 13, 2026, the rate was 6.24%, down from the 2025 average of 6.66%. Homeowners with rates below 3%, like a Michigan woman, are hesitant to refinance despite rising rates.

Market impact: This narrative affects mortgage lenders and real estate companies. Lower rates drive refinancing activity and new home purchases, boosting these companies' profits. Higher rates, like the current trend, decrease refinancing and slow down home sales, impacting lenders' revenue and the housing market's overall growth. Homeowners with low-rate mortgages may delay selling their homes, affecting inventory levels and prices.

What to watch next: The Federal Reserve's next interest rate decision on June 14, 2026, will influence mortgage rates. Additionally, the release of the S&P CoreLogic Case-Shiller Home Price Indices on June 28, 2026, will provide insights into the housing market's response to higher mortgage rates. Lastly, the National Association of Realtors' existing home sales data on July 1, 2026, will indicate how consumer behavior is adapting to the changing mortgage landscape.