Research
How Mortgage Rates Affect Home Prices
How interest rates change buying power and home prices, with 30-year mortgage rates from Freddie Mac shown beside national FHFA HPI® appreciation every year since 1995.
Last updated 2026-09-30
Live data · FHFA HPI® through Q2 2026
Mortgage rates and home prices since 1995
The latest quarterly average 30-year fixed rate in Freddie Mac's survey was 6.41%.
30-year fixed mortgage rate, quarterly average
Freddie Mac Primary Mortgage Market Survey
- 30-year fixed rate (%): 6.4
Same loan, different rates
| Rate | Monthly payment | vs 3% rate |
|---|---|---|
| 3% | $1,265 | — |
| 4% | $1,432 | +$167 |
| 5% | $1,610 | +$346 |
| 6% | $1,799 | +$534 |
| 7% | $1,996 | +$731 |
| 8% | $2,201 | +$936 |
Year by year
| Year | Avg 30-year rate | U.S. home prices | Inflation (CPI-U) |
|---|---|---|---|
| 2026 (to Q2 2026) | 6.26% | +3.0% | +3.9% |
| 2025 | 6.61% | +3.5% | +2.7% |
| 2024 | 6.72% | +5.4% | +2.7% |
| 2023 | 6.80% | +5.2% | +3.2% |
| 2022 | 5.34% | +10.8% | +7.1% |
| 2021 | 2.96% | +18.0% | +6.7% |
| 2020 | 3.12% | +6.3% | +1.2% |
| 2019 | 3.94% | +5.0% | +2.0% |
| 2018 | 4.54% | +4.9% | +2.2% |
| 2017 | 3.99% | +5.4% | +2.1% |
| 2016 | 3.66% | +5.4% | +1.8% |
| 2015 | 3.85% | +5.0% | +0.5% |
| 2014 | 4.17% | +5.1% | +1.3% |
| 2013 | 3.98% | +4.3% | +1.2% |
| 2012 | 3.65% | +0.6% | +1.9% |
| 2011 | 4.45% | -3.3% | +3.3% |
| 2010 | 4.70% | -1.9% | +1.3% |
| 2009 | 5.04% | -5.2% | +1.4% |
| 2008 | 6.03% | -7.2% | +1.6% |
| 2007 | 6.33% | -1.1% | +4.0% |
| 2006 | 6.41% | +4.5% | +1.9% |
| 2005 | 5.87% | +11.2% | +3.7% |
| 2004 | 5.83% | +10.3% | +3.3% |
| 2003 | 5.83% | +7.0% | +1.9% |
| 2002 | 6.54% | +6.7% | +2.2% |
| 2001 | 6.97% | +7.1% | +1.9% |
| 2000 | 8.05% | +7.1% | +3.4% |
| 1999 | 7.42% | +4.9% | +2.6% |
| 1998 | 6.95% | +5.1% | +1.6% |
| 1997 | 7.60% | +4.4% | +1.9% |
| 1996 | 7.80% | +2.5% | +3.2% |
| 1995 | 7.94% | +4.6% | +2.6% |
Rates change what buyers can pay
Most buyers shop by monthly payment. When mortgage rates rise, the same payment supports a smaller loan, so buying power falls even if incomes are unchanged. The payment table on this page shows how much the principal-and-interest payment on the same loan changes across a range of rates.
Lower rates work in reverse: they stretch budgets, pull buyers into the market, and can push prices up when the supply of homes for sale is tight.
Why prices don't simply move opposite to rates
Rates are only one force. Prices also respond to incomes, employment, inventory, construction, and credit standards. Rates often rise when the economy is strong, which supports demand at the same time it squeezes affordability.
Higher rates can also reduce supply. Owners who locked in low rates may stay put rather than give them up, keeping listings scarce and supporting prices even as fewer homes sell.
Reading the year-by-year table
The table pairs each year's average 30-year fixed rate from Freddie Mac's Primary Mortgage Market Survey with the change in the national FHFA HPI® over the same year. It shows periods when prices rose despite higher rates and periods when prices fell even as rates dropped, which is why rates alone are a poor forecast of prices.
Frequently asked questions
- Do home prices fall when mortgage rates rise?
- Not necessarily. Higher rates reduce buying power, but prices also depend on incomes, inventory, and the broader economy. The year-by-year table on this page shows several periods when national prices kept rising while rates were increasing.
- Where do the mortgage rate figures come from?
- Freddie Mac's Primary Mortgage Market Survey, 30-year fixed rate, averaged by year from its weekly survey results.