—when the rate hovered at 3.2%—this upward trajectory has dampened many would-be buyers’ enthusiasm. However, mortgage rates are now relatively low in comparison to the historical average of around 8%. The early 1980s set records for the highest mortgage rates, jumping above a staggering 16%.During the 1970s, thewas to blame for rising mortgage rates.
, losing half of its valuation over a 20-month timeframe. Economic growth stalled into stagflation, which combines high inflation with spiking unemployment rates, causing a sharp decline in U.S. industries like automaking.An oil embargo following the Arab-Israeli War of 1973 worsened the inflation of the ’70s, pushing the U.S. into a recession. Prices of goods and services grew rapidly, which was an effect of severe inflation.
saw some of the highest interest rates on record. In 1981, the average 30-year fixed mortgage rate was a whopping 16.63%.In comparison to the previous two decades, the 1990s allowed for a