US Mortgage Rates: A Four-Decade Rollercoaster

The average 30-year fixed mortgage rate in the United States has seen significant fluctuations over the past four decades. According to Bankrate's data, the current rate as of August 24, 2026 is 6.71%, up from the beginning of the year and higher than the 2025 average of 6.66%. The lowest recorded rate was in January 2021 at 2.65%, while the highest was above 18% in October 1981.

Historically low rates at the start of the 2020s led to a surge in home prices, but rates have stayed consistently between 6% and 7% since the Federal Reserve raised rates in 2022. Despite this, home prices remain high, making housing affordability a major problem. In 2025, borrowers who did not shop around for the best rate overpaid by an average of $278 per month.

Bankrate's research found that only 13% of borrowers paid the most competitive rate available to them in 2025. This highlights the importance of shopping around and comparing rates from multiple lenders to secure a better deal.