In the United States, interest rates for all mortgage types started to increase in 2021. This was due to the Federal Reserve introducing a series of hikes in the federal funds rate to contain the rising inflation. In the second quarter of 2025, the 30-year fixed rate dropped slightly, to **** percent. The rate remained below the peak of **** percent in the fourth quarter of 2023. Why have U.S. home sales decreased? Cheaper mortgages normally encourage consumers to buy homes, while higher borrowing costs have the opposite effect. As interest rates increased in 2022, the number of existing homes sold plummeted. Soaring house prices over the past 10 years have further affected housing affordability. Between 2014 and 2024, the median price of an existing single-family home risen by about ** percent. On the other hand, the median weekly earnings have risen much slower. Comparing mortgage terms and rates Between 2008 and 2024, the average rate on a 15-year fixed-rate mortgage in the United States stood between **** and **** percent. Over the same period, a 30-year mortgage term averaged a fixed-rate of between **** and **** percent. Rates on 15-year loan terms are lower to encourage a quicker repayment, which helps to improve a homeowner’s equity.

View weekly updates and historical trends for 30 Year Mortgage Rate. from United States. Source: Freddie Mac. Track economic data with YCharts analytics.

30 Year Mortgage Rate in the United States decreased to 6.23 percent in November 26 from 6.26 percent in the previous week. This dataset includes a chart with historical data for the United States 30 Year Mortgage Rate.

Graph and download economic data for 15-Year Fixed Rate Mortgage Average in the United States (MORTGAGE15US) from 1991-08-30 to 2025-11-26 about 15-year, mortgage, fixed, interest rate, interest, rate, and USA.

Fixed 30-year mortgage rates in the United States averaged 6.40 percent in the week ending November 21 of 2025. This dataset provides the latest reported value for - United States MBA 30-Yr Mortgage Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

The US Home Loan Market Report is Segmented by Loan Purpose (Purchase, Home Improvement/Renovation, Others), Provider (Banks, Housing Finance Companies, Others), Interest Rates (Fixed Interest Rates, Floating Interest Rates), and Loan Tenure (Less Than or Equal To 10 Years, 11 – 20 Years, and Longer Than 20 Years). The Market Forecasts are Provided in Terms of Value (USD).

The median mortgage rate was the highest among Black and Hispanic mortgage applicants in the third quarter of 2023, followed closely by White applicants. Asian mortgage applicants for conventional conforming loans had lower interest rate, amounting to **** percent.

Graph and download economic data for Bank Prime Loan Rate Changes: Historical Dates of Changes and Rates (PRIME) from 1955-08-04 to 2025-10-30 about prime, loans, interest rate, banks, depository institutions, interest, rate, and USA.

The US home loan market, a cornerstone of the American economy, is experiencing robust growth, projected to maintain a Compound Annual Growth Rate (CAGR) of 18% from 2025 to 2033. This expansion is fueled by several key drivers. Low interest rates, particularly in the early part of the forecast period, have historically stimulated borrowing, making homeownership more accessible. A growing population, coupled with increasing urbanization and a persistent demand for housing in key metropolitan areas, further fuels this market's expansion. Government initiatives aimed at supporting homeownership, such as tax incentives and affordable housing programs, also play a significant role. The market is segmented by loan type (purchase, refinance, improvement), source (banks, HFCs), interest rate (fixed, floating), and loan tenure. While refinancing activity might fluctuate based on prevailing interest rates, the underlying demand for home purchases remains strong, particularly in regions with robust job markets and population growth. Competition among lenders, including major players like Rocket Mortgage, LoanDepot, and Wells Fargo, alongside regional and smaller banks, is fierce, resulting in innovative loan products and competitive pricing. However, the market is not without its challenges. Rising inflation and potential interest rate hikes pose a significant risk, potentially dampening demand and increasing borrowing costs. Stringent lending regulations and increased scrutiny of creditworthiness could restrict access to loans for some borrowers. Furthermore, fluctuations in the housing market itself, including supply chain disruptions impacting construction and material costs, can influence the overall growth trajectory. Despite these headwinds, the long-term outlook for the US home loan market remains positive, driven by the fundamental need for housing and ongoing economic expansion in select regions. The diverse segmentation of the market allows for a nuanced understanding of the specific growth drivers and challenges within each segment. For instance, the home improvement loan segment is expected to see strong growth driven by homeowners' increasing desire to upgrade their existing properties. Recent developments include: June 2023: Bank of America Corp has been adding consumer branches in four new U.S. states, it said on Tuesday, bringing its national footprint closer to rival JPMorgan Chase & Co. Bank of America will likely open new financial centers in Nebraska, Wisconsin, Alabama, and Louisiana as part of a four-year expansion across nine markets, including Louisville, Milwaukee, and New Orleans., July 2022: Rocket Mortgage entered the Canadian Market with the acquisition. The company expanded from offering home loans in Ontario at launch to now providing mortgages in every province, primarily from its headquarters in downtown Windsor. The Edison Financial team grew along with the company, starting with just four team members in early 2020 to more than 140 at present.. Key drivers for this market are: Increase in digitization in mortgage lending market, Increase in innovations in software designs to speed up the mortgage-application process. Potential restraints include: Increase in digitization in mortgage lending market, Increase in innovations in software designs to speed up the mortgage-application process. Notable trends are: Growth in Nonbank Lenders is Expected to Drive the Market.

Graph and download economic data for 30-Year Fixed Rate FHA Mortgage Index (OBMMIFHA30YF) from 2017-01-03 to 2025-12-01 about FHA, 30-year, mortgage, fixed, rate, indexes, and USA.

View market daily updates and historical trends for US Bank Prime Loan Rate. from United States. Source: Federal Reserve. Track economic data with YCharts…

United States Mortgage Fixed Rate: Mth Avg: 15 Year data was reported at 4.250 % pa in Oct 2018. This records an increase from the previous number of 4.080 % pa for Sep 2018. United States Mortgage Fixed Rate: Mth Avg: 15 Year data is updated monthly, averaging 5.680 % pa from Sep 1991 (Median) to Oct 2018, with 326 observations. The data reached an all-time high of 8.800 % pa in Jan 1995 and a record low of 2.660 % pa in Apr 2013. United States Mortgage Fixed Rate: Mth Avg: 15 Year data remains active status in CEIC and is reported by Federal Home Loan Mortgage Corporation, Freddie Mac. The data is categorized under Global Database’s United States – Table US.M012: Mortgage Interest Rate.

Mortgage interest rates worldwide varied greatly in June 2025, from less than ******percent in many European countries to as high as ***percent in Turkey. The average mortgage rate in a country depends on the central bank's base lending rate and macroeconomic indicators such as inflation and forecast economic growth. Since 2022, inflationary pressures have led to rapid increases in mortgage interest rates. Which are the leading mortgage markets? An easy way to estimate the importance of the mortgage sector in each country is by comparing household debt depth, or the ratio of the debt held by households compared to the county's GDP. In 2024, Switzerland, Australia, and Canada had some of the highest household debt to GDP ratios worldwide. While this indicator shows the size of the sector relative to the country’s economy, the value of mortgages outstanding allows to compare the market size in different countries. In Europe, for instance, the United Kingdom, Germany, and France were the largest mortgage markets by outstanding mortgage lending. Mortgage lending trends in the U.S. In the United States, new mortgage lending soared in 2021. This was largely due to the growth of new refinance loans that allow homeowners to renegotiate their mortgage terms and replace their existing loan with a more favorable one. Following the rise in interest rates, the mortgage market cooled, and refinance loans declined.

United States Mortgage Fixed Rate: Wk Ending: 30 Year data was reported at 4.540 % pa in 26 Jul 2018. This records an increase from the previous number of 4.520 % pa for 19 Jul 2018. United States Mortgage Fixed Rate: Wk Ending: 30 Year data is updated weekly, averaging 4.550 % pa from Jan 2004 (Median) to 26 Jul 2018, with 760 observations. The data reached an all-time high of 6.800 % pa in 20 Jul 2006 and a record low of 3.310 % pa in 22 Nov 2012. United States Mortgage Fixed Rate: Wk Ending: 30 Year data remains active status in CEIC and is reported by Federal Home Loan Mortgage Corporation, Freddie Mac. The data is categorized under Global Database’s USA – Table US.M012: Mortgage Interest Rate.

Graph and download economic data for 30-Year Fixed Rate Veterans Affairs Mortgage Index (OBMMIVA30YF) from 2017-01-03 to 2025-12-01 about veterans, 30-year, mortgage, fixed, rate, indexes, and USA.

United States Mortgage Fixed Rate: Mth Avg: 30 Year data was reported at 4.870 % pa in Nov 2018. This records an increase from the previous number of 4.830 % pa for Oct 2018. United States Mortgage Fixed Rate: Mth Avg: 30 Year data is updated monthly, averaging 7.635 % pa from Apr 1971 (Median) to Nov 2018, with 572 observations. The data reached an all-time high of 18.450 % pa in Oct 1981 and a record low of 3.350 % pa in Dec 2012. United States Mortgage Fixed Rate: Mth Avg: 30 Year data remains active status in CEIC and is reported by Federal Home Loan Mortgage Corporation, Freddie Mac. The data is categorized under Global Database’s United States – Table US.M012: Mortgage Interest Rate.

USA home loan market valued at USD 14.0-14.5 trillion, driven by low interest rates, rising homeownership, and government incentives, with key segments like fixed-rate mortgages dominating.

Home prices in the U.S. reach new heights The American housing market continues to show remarkable resilience, with the S&P/Case Shiller U.S. National Home Price Index reaching an all-time high of 325.78 in July 2024. This figure represents a significant increase from the index value of 166.24 recorded in January 2015, highlighting the substantial growth in home prices over the past decade. The S&P Case Shiller National Home Price Index is based on the prices of single-family homes and is the leading indicator of the American housing market and one of the indicators of the state of the broader economy. The S&P Case Shiller National Home Price Index series also includes S&P/Case Shiller 20-City Composite Home Price Index and S&P/Case Shiller 10-City Composite Home Price Index – measuring the home price changes in the major U.S. metropolitan areas, as well as twenty composite indices for the leading U.S. cities. Market fluctuations and recovery Despite the overall upward trend, the housing market has experienced some fluctuations in recent years. During the housing boom in 2021, the number of existing home sales reached the highest level since 2006. However, transaction volumes quickly plummeted, as the soaring interest rates and out-of-reach prices led to housing sentiment deteriorating. Factors influencing home prices Several factors have contributed to the rise in home prices, including a chronic supply shortage, the gradual decline in interest rates, and the spike in demand during the COVID-19 pandemic. During the subprime mortgage crisis (2007-2010), the construction of new homes declined dramatically. Although it has gradually increased since then, the number of new building permits, home starts, and completions are still shy from the levels before the crisis. With demand outweighing supply, competition for homes can be fierce, leading to bidding wars and soaring prices. The supply of existing homes is further constrained, as homeowners are less likely to sell and move homes due to the worsened lending conditions.

In 2024, United Wholesale Mortgage was the firm with the highest value of home purchase mortgage originations. The company was responsible for home buying loans worth **** billion U.S. dollars that year. The mortgage market has suffered a decline in new business since 2021, mostly attributed to refinancing loans plummeting due to the higher mortgage interest rates. Nevertheless, the market is forecast to pick up in 2026, as interest rates decline.

Context

The Federal Reserve sets interest rates to promote conditions that achieve the mandate set by the Congress — high employment, low and stable inflation, sustainable economic growth, and moderate long-term interest rates. Interest rates set by the Fed directly influence the cost of borrowing money. Lower interest rates encourage more people to obtain a mortgage for a new home or to borrow money for an automobile or for home improvement. Lower rates encourage businesses to borrow funds to invest in expansion such as purchasing new equipment, updating plants, or hiring more workers. Higher interest rates restrain such borrowing by consumers and businesses.

Content

This dataset includes data on the economic conditions in the United States on a monthly basis since 1954. The federal funds rate is the interest rate at which depository institutions trade federal funds (balances held at Federal Reserve Banks) with each other overnight. The rate that the borrowing institution pays to the lending institution is determined between the two banks; the weighted average rate for all of these types of negotiations is called the effective federal funds rate. The effective federal funds rate is determined by the market but is influenced by the Federal Reserve through open market operations to reach the federal funds rate target. The Federal Open Market Committee (FOMC) meets eight times a year to determine the federal funds target rate; the target rate transitioned to a target range with an upper and lower limit in December 2008. The real gross domestic product is calculated as the seasonally adjusted quarterly rate of change in the gross domestic product based on chained 2009 dollars. The unemployment rate represents the number of unemployed as a seasonally adjusted percentage of the labor force. The inflation rate reflects the monthly change in the Consumer Price Index of products excluding food and energy.

Acknowledgements

The interest rate data was published by the Federal Reserve Bank of St. Louis' economic data portal. The gross domestic product data was provided by the US Bureau of Economic Analysis; the unemployment and consumer price index data was provided by the US Bureau of Labor Statistics.

Inspiration

How does economic growth, unemployment, and inflation impact the Federal Reserve's interest rates decisions? How has the interest rate policy changed over time? Can you predict the Federal Reserve's next decision? Will the target range set in March 2017 be increased, decreased, or remain the same?