What was the average 30-year mortgage rate in 1973?

The average 30-year fixed mortgage rate in 1973 was 8.04%, according to Freddie Mac's Primary Mortgage Market Survey (PMMS). This was 0.66 percentage points higher than the 7.38% average in 1972.

How much was a mortgage payment in 1973?

At the 1973 average rate of 8.04%, the monthly principal and interest payment on a $300,000 30-year fixed mortgage would have been approximately $2,210. At today's average rate of 6.84%, the same mortgage costs $1,964/month.

← 1972 (7.38%)1974 (9.19%) →

📊 Historical Mortgage Data · Source: Freddie Mac PMMS

Mortgage Rates in 1973

OPEC oil embargo triggers inflation surge

8.04%

Annual avg rate

30-yr fixed

+0.66pp

vs 1972

Year-over-year

8.73%

Fed funds rate

Annual avg

+6.22%

CPI inflation

Year-over-year

Estimated Monthly Rate Trend — 1973

Estimated monthly rates based on annual averages and adjacent-year interpolation. Seasonal pattern reflects typical mortgage market spring/summer premium.

Low: 7.69%High: 8.47%Avg: 8.04%

1973 in Context — Surrounding Years

Year	30-Yr Rate	Fed Funds	Inflation
1971	7.54%	4.66%	+4.29%
1972	7.38%	4.44%	+3.27%
▶ 1973	8.04%	8.73%	+6.22%
1974	9.19%	10.51%	+11.06%
1975	9.05%	5.82%	+9.14%
1976	8.87%	5.05%	+5.74%
1977	8.85%	5.54%	+6.50%

Economic Context in 1973

🏦

Federal Reserve Policy

The Federal Reserve under Burns began tightening, with the fed funds rate climbing from 5.4% to 11% by year end. The Nixon administration imposed wage and price controls to suppress visible inflation.

📈

Inflation Environment

CPI surged to 6.2% as the October OPEC oil embargo quadrupled oil prices overnight. This supply shock marked the beginning of the stagflation decade.

🏠

Housing Market Impact

Housing starts peaked then fell sharply as mortgage rates rose above 8% and builder confidence collapsed. The combination of rising rates and energy costs sharply reduced affordability.

What Did a 1973 Mortgage Cost? ($300,000 Loan · 30 Years)

$2,210/mo

At 1973 rate (8.04%)

Principal + interest only

$1,964/mo

At current rate (6.84%)

Principal + interest only

$246/mo

1973 was more expensive

vs today on same loan

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Disclaimer: Rates shown are historical averages. Actual mortgage rates vary by lender and borrower profile. Monthly rates are estimated from annual averages and are for illustrative purposes only. Data is for educational purposes only and does not constitute financial advice. Source: Freddie Mac Primary Mortgage Market Survey (PMMS), Federal Reserve FRED, and BLS CPI-U.

← 1972 (7.38%)1974 (9.19%) →

📊 Historical Mortgage Data · Source: Freddie Mac PMMS

Mortgage Rates in 1973

OPEC oil embargo triggers inflation surge

8.04%

Annual avg rate

30-yr fixed

+0.66pp

vs 1972

Year-over-year

8.73%

Fed funds rate

Annual avg

+6.22%

CPI inflation

Year-over-year

Estimated Monthly Rate Trend — 1973

Estimated monthly rates based on annual averages and adjacent-year interpolation. Seasonal pattern reflects typical mortgage market spring/summer premium.

Low: 7.69%High: 8.47%Avg: 8.04%

1973 in Context — Surrounding Years

Year	30-Yr Rate	Fed Funds	Inflation
1971	7.54%	4.66%	+4.29%
1972	7.38%	4.44%	+3.27%
▶ 1973	8.04%	8.73%	+6.22%
1974	9.19%	10.51%	+11.06%
1975	9.05%	5.82%	+9.14%
1976	8.87%	5.05%	+5.74%
1977	8.85%	5.54%	+6.50%

Economic Context in 1973

🏦

Federal Reserve Policy

📈

Inflation Environment

CPI surged to 6.2% as the October OPEC oil embargo quadrupled oil prices overnight. This supply shock marked the beginning of the stagflation decade.

🏠

Housing Market Impact

Housing starts peaked then fell sharply as mortgage rates rose above 8% and builder confidence collapsed. The combination of rising rates and energy costs sharply reduced affordability.