Mortgage rates today, while higher than recent years, are still lower than historical averages. The attached graph and chart illustrate mortgage rates over the last 50 years. Per Freddie Mac, from April 1971 to April 2025, the average 30-year fixed mortgage is 7.73%. Here's a comparison of mortgage rates for 30-year fixed-rate mortgages today versus historical averages.
1. Current Mortgage Rates
Current 30-year fixed mortgage rates, as of April 2025, range between 6.0% - 6.5%. This represents an improvement from the peak October 2023 rate of 7.79% (Freddie Mac) and is lower than the 50 year average.
2. Anomaly: 2020-2021 Pandemic and 2008 Recession and Housing Crisis
In the last 50 years, there were only 2 periods where mortgage rates were artificially decreased due to economic conditions:
• During 2020-2021, when the Covid-19 Pandemic was at its height, aggressive actions were taken to stimulate the economy, including lowering the Federal Reserve's key interest rates. This led to the historically low mortgage rates. Mortgage rates hit record lows, with the 30-year fixed-rate mortgage dipping as low as 2.65% in early 2021. This artificial stimulus created the low rates.
• The 2008 financial housing crisis created another period where the Federal Reserve implemented policies to stimulate the economic recovery, including keeping lower mortgage rates. As the economy improved, mortgage rates gradually increased through the 2010s. Between 2008-2015, 30-year fixed rate mortgage rates averaged between 4.5% and 5.5%. This was historically low but higher than the pandemic period.
From the 1990s-2008, mortgage rates were relatively higher, although they started to trend downward as inflation was controlled. The 1980s are often cited as one of the highest periods for mortgage rates in U.S. history, with peak rates, as high as 18%, occurring in the early part of the decade. This was due to high inflation and aggressive monetary policies by the Federal Reserve.
3. Summary of 30 Year Fixed Mortgage Rates
• Current Rates: 6% to 6.5%
• 2020-2021 (Pandemic): average rates dipped as low as 2.65%; a historic low
• 2008-2019: Rates averaged around 4% to 6%
• 2000-2007: Rates averaged 6-8%
• 1990s: Rates ranged from 7% to 10%
• 1980s: Rates ranged from 10% to 16.5%
Conclusion
Even though rates today are higher than they were in the historically low mortgage rate period from 2020-2021, it is unrealistic to wait for rates to get that low again. Those low rates were created as a stimulus during the height of the Covid-19 pandemic. The current 6% to 6.5% average mortgage rate is still much lower than rates in the 1980s or even the 1990s, and lower than the 50-year average of 7.73%. The current environment offers relatively affordable borrowing compared to historical norms. If you are waiting for rates to come down to some magical number, remember, while waiting for interest rates to come down, home prices continue to increase.
As always, it is essential for home buyers to review their needs and do some homework before jumping into the market. When looking to purchase a home, in addition to what features and amenities you want in a home, you’ll want to consider factors like loan size and monthly payments. Our Maxim Properties real estate professionals can help you navigate the real estate and financing landscape to meet your needs. Contact us today.
