Historical Interest Rate Levels

The purpose of these charts is to provide a historical overview of the mortgage loan interest rates for a 30-year fully-amortized fixed-rate mortgage loan and to provide a historical overview of a component of monetary policy that has implemented by the U.S. Federal Reserve board.

Prospective home buyers should understand that the Federal Reserve sets the federal funds rate as part of its monetary policy responsibilities, the interest rate for the 10-year U.S. Treasury security is tied to the federal funds rate, and that the national average mortgage loan interest rate for a 30-year fully-amortized fixed-rate mortgage loan is tied to the yield on the 10-year U.S. Treasury security.

By understanding these interest-rate relationships, prospective home buyers will be in a better position to assess the housing market in their community.  This in turn should help them make a prudent home purchase decision.