Mortgage interest rates play a significant role in the housing market and homeownership affordability. They determine the cost of borrowing and impact monthly mortgage payments. In this article, we'll take a journey through time and explore the historical trends of mortgage interest rates in the United States since 1930. Understanding these trends can provide valuable insights into the factors that have shaped the housing market over the decades.
1930s - The Great Depression and Fixed Rates:
The 1930s were a time of economic turmoil due to the Great Depression. Mortgage interest rates during this period were generally fixed and relatively high, averaging around 5 to 6%. The availability of mortgage credit was limited, making homeownership a challenge for many.
1940s to 1950s - Post-War Boom and Stability:
Following World War II, the U.S. experienced an economic boom. Mortgage interest rates remained stable and relatively low, averaging between 4% and 5%. The 30-year fix
CALIFORNIA Real Estate and Mortgage