What was the average 30-year mortgage rate in 2004?

The average 30-year fixed mortgage rate in 2004 was 5.84%, according to Freddie Mac's Primary Mortgage Market Survey (PMMS). This was 0.01 percentage points higher than the 5.83% average in 2003.

How much was a mortgage payment in 2004?

At the 2004 average rate of 5.84%, the monthly principal and interest payment on a $300,000 30-year fixed mortgage would have been approximately $1,768. At today's average rate of 6.84%, the same mortgage costs $1,964/month.

What caused mortgage rates in 2004?

The Federal Reserve maintained a federal funds rate averaging 1.35% during 2004. Monetary policy was calibrated to balance growth and inflation objectives. Consumer price inflation was 2.68% in 2004. Inflation was within or near the Federal Reserve's long-run target range.

← 2003 (5.83%)2005 (5.87%) →

📊 Historical Mortgage Data · Source: Freddie Mac PMMS

Mortgage Rates in 2004

30-year fixed averaged 5.84% — rising rates

5.84%

Annual avg rate

30-yr fixed

+0.01pp

vs 2003

Year-over-year

1.35%

Fed funds rate

Annual avg

+2.68%

CPI inflation

Year-over-year

Estimated Monthly Rate Trend — 2004

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

Low: 5.73%High: 5.96%Avg: 5.84%

2004 in Context — Surrounding Years

Year	30-Yr Rate	Fed Funds	Inflation
2000	8.05%	6.24%	+3.38%
2001	6.97%	3.89%	+2.83%
2002	6.54%	1.67%	+1.59%
2003	5.83%	1.13%	+2.27%
▶ 2004	5.84%	1.35%	+2.68%
2005	5.87%	3.22%	+3.39%
2006	6.41%	4.97%	+3.23%
2007	6.34%	5.02%	+2.85%
2008	6.03%	1.92%	+3.84%

Economic Context in 2004

🏦

Federal Reserve Policy

The Federal Reserve maintained a federal funds rate averaging 1.35% during 2004. Monetary policy was calibrated to balance growth and inflation objectives.

📈

Inflation Environment

Consumer price inflation was 2.68% in 2004. Inflation was within or near the Federal Reserve's long-run target range.

🏠

Housing Market Impact

With historically low mortgage rates averaging 5.84%, housing affordability was near the best levels in decades. Rising rates dampened refinancing and put pressure on housing demand.

What Did a 2004 Mortgage Cost? ($300,000 Loan · 30 Years)

$1,768/mo

At 2004 rate (5.84%)

Principal + interest only

$1,964/mo

At current rate (6.84%)

Principal + interest only

$196/mo

2004 was cheaper

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.

← 2003 (5.83%)2005 (5.87%) →

📊 Historical Mortgage Data · Source: Freddie Mac PMMS

Mortgage Rates in 2004

30-year fixed averaged 5.84% — rising rates

5.84%

Annual avg rate

30-yr fixed

+0.01pp

vs 2003

Year-over-year

1.35%

Fed funds rate

Annual avg

+2.68%

CPI inflation

Year-over-year

Estimated Monthly Rate Trend — 2004

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

Low: 5.73%High: 5.96%Avg: 5.84%

2004 in Context — Surrounding Years

Year	30-Yr Rate	Fed Funds	Inflation
2000	8.05%	6.24%	+3.38%
2001	6.97%	3.89%	+2.83%
2002	6.54%	1.67%	+1.59%
2003	5.83%	1.13%	+2.27%
▶ 2004	5.84%	1.35%	+2.68%
2005	5.87%	3.22%	+3.39%
2006	6.41%	4.97%	+3.23%
2007	6.34%	5.02%	+2.85%
2008	6.03%	1.92%	+3.84%

Economic Context in 2004

🏦

Federal Reserve Policy

The Federal Reserve maintained a federal funds rate averaging 1.35% during 2004. Monetary policy was calibrated to balance growth and inflation objectives.

📈

Inflation Environment

Consumer price inflation was 2.68% in 2004. Inflation was within or near the Federal Reserve's long-run target range.

🏠

Housing Market Impact

With historically low mortgage rates averaging 5.84%, housing affordability was near the best levels in decades. Rising rates dampened refinancing and put pressure on housing demand.