Mortgage Rates For January 29, 2024: The History of Mortgage Rates in America
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If you’re new to buying a home or haven’t made a home purchase in years, it’s natural to reflect upon the state of mortgage rates and the larger system in place to financing homes. While most of us grew up learning about mortgages as something our parents had to pay or a normal part of life in America for homeowners, mortgages have changed over the last half a century.
Looking at the patterns of the past and seeing how the market shifted to correct can make you feel more informed and at ease about committing to a mortgage. A mortgage is a major commitment – so you should be thinking seriously about it. Let’s take a look at some of the past markets as you think about the daily average mortgage rates today.
Today’s 30-year mortgage interest rates
The average daily mortgage interest rate for Monday, January 29, 2024 is 6.90% for a 30 year fixed rate. The rate remained the same from yesterday and rose 0.22% from December 2023. This information is sourced daily from correspondent, retail, and wholesale lenders located in the United States.
Lenders in the freerateupdate.com network are currently offering rates as low as 6.0% (6.2% APR) on a 30-year fixed-rate mortgage. Receive a rate up to 0.90% lower than today’s average 30-year mortgage rate if you qualify. ⓘ
Today’s 15-year mortgage interest rates
The average daily mortgage interest rate for Monday, January 29, 2029 is 6.31% for a 15 year fixed rate. The rate rose 0.02% from yesterday and rose 0.27% from December 2023. This information is sourced daily from correspondent, retail, and wholesale lenders located in the United States.
Lenders in the freerateupdate.com network are currently offering rates as low as 5.0% (5.3% APR) on a 15-year fixed-rate mortgage. Receive a rate up to 1.31% lower than today’s average 15-year mortgage rate if you qualify. ⓘ
Getting a mortgage in the 1970s or 1980s
Financing a home in the 1970s involved dealing with a high rate. At the start of the decade, they were just over 7 percent. However, the Vietnam War impacted mortgage rates in the 1970s as families continued to grow and invest in homes, resulting in an average mortgage rate of 12.9% in 1979. The mix of government spending (necessitated by multiple crises including the pandemic) and high inflation can impact mortgage rates extensively – not unlike what we have today.
Notorious as an era of high inflation, it was expensive to borrow in the 1980s – the decade of excess. At the end of 1981, mortgage rates topped 18%. The Federal Reserve Board corrected this “stagflation” by placing limits on the money supply. This resulted in an economic recession with a swift rebound, and a decline in interest rates. At the end of the 1980s, interest rates were under 10%.
Mortgage rates in the 2000s and 2010s
In the 2000s, mortgage rates hovered in the 5-8% range, and the average annual wage increase was growing for Americans. This means an increase in the amount of homes being bought, and for many individuals, a foray into investment properties. The affordable market created an era of flipping, where people would buy homes, fix them up, and sell them for a profit before reinvesting for even more profit elsewhere.
This came to a stop in 2008, when a financial crisis emerged largely due to subprime lending practices. The Federal Reserve took rates close to zero to compensate, and by the end of the decade, rates were just over 5%.
In the 2010s, millions of people were left without homes due to foreclosure. The homeownership rate fell and May 2013 had rates at 3.35%.
As you can see, the market has deliberate adjustments in place in times of crisis. While uncertain times may be upon us always, that’s no reason to deter homeownership and moving your life forward. The best course of action is to check rates daily and return to this site daily to study the market before you make your move.
