What was the average 30-year mortgage rate in 1987?

The average 30-year fixed mortgage rate in 1987 was 10.21%, according to Freddie Mac's Primary Mortgage Market Survey (PMMS). This was 0.02 percentage points higher than the 10.19% average in 1986.

How much was a mortgage payment in 1987?

At the 1987 average rate of 10.21%, the monthly principal and interest payment on a $300,000 30-year fixed mortgage would have been approximately $2,679. At today's average rate of 6.84%, the same mortgage costs $1,964/month.

What caused mortgage rates in 1987?

The Federal Reserve maintained a federal funds rate averaging 6.66% during 1987. Monetary policy was calibrated to balance growth and inflation objectives. Consumer price inflation was 3.66% in 1987. Inflation was within or near the Federal Reserve's long-run target range.

← 1986 (10.19%)1988 (10.34%) →

📊 Historical Mortgage Data · Source: Freddie Mac PMMS

Mortgage Rates in 1987

30-year fixed averaged 10.21% — rising rates

10.21%

Annual avg rate

30-yr fixed

+0.02pp

vs 1986

Year-over-year

6.66%

Fed funds rate

Annual avg

+3.66%

CPI inflation

Year-over-year

Estimated Monthly Rate Trend — 1987

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

Low: 10.14%High: 10.35%Avg: 10.21%

1987 in Context — Surrounding Years

Year	30-Yr Rate	Fed Funds	Inflation
1983	13.24%	9.09%	+3.22%
1984	13.88%	10.23%	+4.32%
1985	12.43%	8.10%	+3.56%
1986	10.19%	6.80%	+1.86%
▶ 1987	10.21%	6.66%	+3.66%
1988	10.34%	7.57%	+4.08%
1989	10.32%	9.21%	+4.83%
1990	10.13%	8.10%	+5.39%
1991	9.25%	5.69%	+4.25%

Economic Context in 1987

🏦

Federal Reserve Policy

The Federal Reserve maintained a federal funds rate averaging 6.66% during 1987. Monetary policy was calibrated to balance growth and inflation objectives.

📈

Inflation Environment

Consumer price inflation was 3.66% in 1987. Inflation was within or near the Federal Reserve's long-run target range.

🏠

Housing Market Impact

With elevated mortgage rates averaging 10.21%, housing affordability was tight by modern standards. Rising rates dampened refinancing and put pressure on housing demand.

What Did a 1987 Mortgage Cost? ($300,000 Loan · 30 Years)

$2,679/mo

At 1987 rate (10.21%)

Principal + interest only

$1,964/mo

At current rate (6.84%)

Principal + interest only

$716/mo

1987 was more expensive

vs today on same loan

Calculate Your Mortgage →

Related Calculators

🏠

Mortgage Calculator

Calculate your payment at today's rates

🔄

Mortgage Refinance Calculator

See if refinancing from 10.21% saves money

🏗️

Home Affordability Calculator

How much house can you afford today?

←

Previous year

1986 — 10.19%

📊 View all years (1971–2025) →

Next year

1988 — 10.34%

→

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.

← 1986 (10.19%)1988 (10.34%) →

📊 Historical Mortgage Data · Source: Freddie Mac PMMS

Mortgage Rates in 1987

30-year fixed averaged 10.21% — rising rates

10.21%

Annual avg rate

30-yr fixed

+0.02pp

vs 1986

Year-over-year

6.66%

Fed funds rate

Annual avg

+3.66%

CPI inflation

Year-over-year

Estimated Monthly Rate Trend — 1987

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

Low: 10.14%High: 10.35%Avg: 10.21%

1987 in Context — Surrounding Years

Year	30-Yr Rate	Fed Funds	Inflation
1983	13.24%	9.09%	+3.22%
1984	13.88%	10.23%	+4.32%
1985	12.43%	8.10%	+3.56%
1986	10.19%	6.80%	+1.86%
▶ 1987	10.21%	6.66%	+3.66%
1988	10.34%	7.57%	+4.08%
1989	10.32%	9.21%	+4.83%
1990	10.13%	8.10%	+5.39%
1991	9.25%	5.69%	+4.25%

Economic Context in 1987

🏦

Federal Reserve Policy

The Federal Reserve maintained a federal funds rate averaging 6.66% during 1987. Monetary policy was calibrated to balance growth and inflation objectives.

📈

Inflation Environment

Consumer price inflation was 3.66% in 1987. Inflation was within or near the Federal Reserve's long-run target range.

🏠

Housing Market Impact

With elevated mortgage rates averaging 10.21%, housing affordability was tight by modern standards. Rising rates dampened refinancing and put pressure on housing demand.