What was the average 30-year mortgage rate in 1978?

The average 30-year fixed mortgage rate in 1978 was 9.64%, according to Freddie Mac's Primary Mortgage Market Survey (PMMS). This was 0.79 percentage points higher than the 8.85% average in 1977.

How much was a mortgage payment in 1978?

At the 1978 average rate of 9.64%, the monthly principal and interest payment on a $300,000 30-year fixed mortgage would have been approximately $2,553. At today's average rate of 6.84%, the same mortgage costs $1,964/month.

← 1977 (8.85%)1979 (11.20%) →

📊 Historical Mortgage Data · Source: Freddie Mac PMMS

Mortgage Rates in 1978

30-year fixed averaged 9.64% — rising rates

9.64%

Annual avg rate

30-yr fixed

+0.79pp

vs 1977

Year-over-year

7.93%

Fed funds rate

Annual avg

+7.63%

CPI inflation

Year-over-year

Estimated Monthly Rate Trend — 1978

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

Low: 9.23%High: 10.27%Avg: 9.64%

1978 in Context — Surrounding Years

Year	30-Yr Rate	Fed Funds	Inflation
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%
1980	13.74%	13.35%	+13.55%
1981	16.63%	16.38%	+10.33%
1982	16.04%	12.26%	+6.13%

Economic Context in 1978

🏦

Federal Reserve Policy

The Federal Reserve maintained a federal funds rate averaging 7.93% during 1978. Monetary policy was calibrated to balance growth and inflation objectives.

📈

Inflation Environment

Consumer price inflation was 7.63% in 1978. Elevated inflation was a primary economic concern.

🏠

Housing Market Impact

With elevated mortgage rates averaging 9.64%, housing affordability was tight by modern standards. Rising rates dampened refinancing and put pressure on housing demand.

What Did a 1978 Mortgage Cost? ($300,000 Loan · 30 Years)

$2,553/mo

At 1978 rate (9.64%)

Principal + interest only

$1,964/mo

At current rate (6.84%)

Principal + interest only

$589/mo

1978 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.

← 1977 (8.85%)1979 (11.20%) →

📊 Historical Mortgage Data · Source: Freddie Mac PMMS

Mortgage Rates in 1978

30-year fixed averaged 9.64% — rising rates

9.64%

Annual avg rate

30-yr fixed

+0.79pp

vs 1977

Year-over-year

7.93%

Fed funds rate

Annual avg

+7.63%

CPI inflation

Year-over-year

Estimated Monthly Rate Trend — 1978

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

Low: 9.23%High: 10.27%Avg: 9.64%

1978 in Context — Surrounding Years

Year	30-Yr Rate	Fed Funds	Inflation
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%
1980	13.74%	13.35%	+13.55%
1981	16.63%	16.38%	+10.33%
1982	16.04%	12.26%	+6.13%

Economic Context in 1978

🏦

Federal Reserve Policy

The Federal Reserve maintained a federal funds rate averaging 7.93% during 1978. Monetary policy was calibrated to balance growth and inflation objectives.

📈

Inflation Environment

Consumer price inflation was 7.63% in 1978. Elevated inflation was a primary economic concern.

🏠

Housing Market Impact

With elevated mortgage rates averaging 9.64%, housing affordability was tight by modern standards. Rising rates dampened refinancing and put pressure on housing demand.