From 24/7 Wall St. · AJ Tiarsmith · · 1m
1970s Mortgage Rates vs Today's Frozen Market
Mortgage rates in the 1970s hit 15% while today's 7.4% rate froze the housing market.
In brief
Mortgage rates in the 1970s hit 15% while today's 7.4% rate froze the housing market. High 1970s mortgage rates and today's 7.4% rate both froze the housing market despite past booms. Originally reported by 24/7 Wall St..
1970s Mortgage Rates
Mortgage rates in the 1970s regularly topped 15% and buyers lined up.
Today's Mortgage Rate
Today a 30-year fixed mortgage rate near 7.4% has nearly frozen the housing market.
Housing Starts Drop
Housing starts fell nearly 7.5% year on year in September, hitting a 25-year low.
Rate Shock in Months
Freddie Mac's 30-year average reached 7.40% on October 15, up from 5.98% on February 26.
Why Fed Relief Skipped Buyers
Mortgages are priced off the 10-year Treasury yield, which hit 5.15% on October 19.
Housing Prices Keep Rising
Home prices rose 1.9% year over year in July, setting a record with the Case-Shiller index.
Market Frozen Now
The housing market is frozen by two forces: rising long-term yields and tight credit standards.
What matters most
High 1970s mortgage rates and today's 7.4% rate both froze the housing market despite past booms.
