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30-year fixed averaged 8.85% — falling rates
8.85%
Annual avg rate
30-yr fixed
-0.02pp
vs 1976
Year-over-year
5.54%
Fed funds rate
Annual avg
+6.50%
CPI inflation
Year-over-year
Estimated monthly rates based on annual averages and adjacent-year interpolation. Seasonal pattern reflects typical mortgage market spring/summer premium.
The Federal Reserve maintained a federal funds rate averaging 5.54% during 1977. Monetary policy was calibrated to balance growth and inflation objectives.
Consumer price inflation was 6.50% in 1977. Inflation was within or near the Federal Reserve's long-run target range.
With elevated mortgage rates averaging 8.85%, housing affordability was tight by modern standards. Declining rates spurred refinancing activity and supported home purchases.
$2,382/mo
At 1977 rate (8.85%)
Principal + interest only
$1,964/mo
At current rate (6.84%)
Principal + interest only
$418/mo
1977 was more expensive
vs today on same loan