Loading ...The 30-year fixed mortgage rate reached a pinnacle of 18.4 percent in October 1981, according to Freddie Mac, seesawing down to the 9 percent range by 1986 and closing the decade at 9.78 percent. The 1970s oil embargo against the U.S., which drove up inflation quickly, contributed to the increased borrowing costs.
Comment: The houses near me were about $40,000 from 1968 until 1982, because of the removal of the gold standard and the Fed raised rates from around 5% to 18% so there were no price rises for 14 years. The stock market was in the same boat.