What was the average 30-year mortgage rate in 1975?

The average 30-year fixed mortgage rate in 1975 was 9.05%, according to Freddie Mac's Primary Mortgage Market Survey (PMMS). This was 0.14 percentage points lower than the 9.19% average in 1974.

How much was a mortgage payment in 1975?

At the 1975 average rate of 9.05%, the monthly principal and interest payment on a $300,000 30-year fixed mortgage would have been approximately $2,425. At today's average rate of 6.84%, the same mortgage costs $1,964/month.

← 1974 (9.19%)1976 (8.87%) →

📊 Historical Mortgage Data · Source: Freddie Mac PMMS

Mortgage Rates in 1975

30-year fixed averaged 9.05% — falling rates

9.05%

Annual avg rate

30-yr fixed

-0.14pp

vs 1974

Year-over-year

5.82%

Fed funds rate

Annual avg

+9.14%

CPI inflation

Year-over-year

Estimated Monthly Rate Trend — 1975

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

Low: 8.86%High: 9.18%Avg: 9.05%

1975 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%
1978	9.64%	7.93%	+7.63%
1979	11.20%	11.20%	+11.25%

Economic Context in 1975

🏦

Federal Reserve Policy

The Federal Reserve maintained a federal funds rate averaging 5.82% during 1975. Monetary policy was calibrated to balance growth and inflation objectives.

📈

Inflation Environment

Consumer price inflation was 9.14% in 1975. Elevated inflation was a primary economic concern.

🏠

Housing Market Impact

With elevated mortgage rates averaging 9.05%, housing affordability was tight by modern standards. Declining rates spurred refinancing activity and supported home purchases.

What Did a 1975 Mortgage Cost? ($300,000 Loan · 30 Years)

$2,425/mo

At 1975 rate (9.05%)

Principal + interest only

$1,964/mo

At current rate (6.84%)

Principal + interest only

$461/mo

1975 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.

← 1974 (9.19%)1976 (8.87%) →

📊 Historical Mortgage Data · Source: Freddie Mac PMMS

Mortgage Rates in 1975

30-year fixed averaged 9.05% — falling rates

9.05%

Annual avg rate

30-yr fixed

-0.14pp

vs 1974

Year-over-year

5.82%

Fed funds rate

Annual avg

+9.14%

CPI inflation

Year-over-year

Estimated Monthly Rate Trend — 1975

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

Low: 8.86%High: 9.18%Avg: 9.05%

1975 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%
1978	9.64%	7.93%	+7.63%
1979	11.20%	11.20%	+11.25%

Economic Context in 1975

🏦

Federal Reserve Policy

The Federal Reserve maintained a federal funds rate averaging 5.82% during 1975. Monetary policy was calibrated to balance growth and inflation objectives.

📈

Inflation Environment

Consumer price inflation was 9.14% in 1975. Elevated inflation was a primary economic concern.

🏠

Housing Market Impact

With elevated mortgage rates averaging 9.05%, housing affordability was tight by modern standards. Declining rates spurred refinancing activity and supported home purchases.