Historical Mortgage Rates in Texas in the Past 50 Years

Mortgage rates are an important factor to consider when buying a home. They can have a significant impact on your monthly payments and the total amount of interest you’ll pay over the life of your mortgage. In Texas, mortgage rates have fluctuated over the past 50 years, reflecting changes in the national and state economies. Here’s a brief overview of historical mortgage rates in Texas:

1970s – High Rates and Inflation

During the 1970s, mortgage rates in Texas were high due to inflation and a volatile economy. In 1979, the average 30-year fixed-rate mortgage in Texas was 11.20%. This was significantly higher than the national average, which was 9.79%.

1980s – The Savings and Loan Crisis

The 1980s were marked by the Savings and Loan Crisis, which had a significant impact on the mortgage industry in Texas. As a result, mortgage rates were unstable and fluctuated throughout the decade. In 1981, the average 30-year fixed-rate mortgage in Texas was 16.63%, which was the highest rate recorded in the state’s history. However, by the end of the decade, mortgage rates had dropped significantly, with the average rate in 1989 at 10.32%.

1990s – Stable Rates and Economic Growth

The 1990s saw a period of stability and economic growth in Texas, which led to relatively stable mortgage rates. In 1990, the average 30-year fixed-rate mortgage in Texas was 10.13%, and by 1999, it had decreased to 7.84%.

2000s – Record-Low Rates

The early 2000s saw some of the lowest mortgage rates in Texas’s history. In 2003, the average 30-year fixed-rate mortgage in Texas was 5.77%, which was the lowest rate recorded since the 1960s. However, rates began to rise again in the mid-2000s as the housing market started to experience a bubble.

2010s – Recovery and Low Rates

The 2010s saw a slow recovery in the housing market in Texas, with relatively low mortgage rates throughout the decade. In 2012, the average 30-year fixed-rate mortgage in Texas was 3.66%, which was the lowest rate recorded since the 1950s. Rates remained low throughout the rest of the decade, with the average rate in 2019 at 3.94%.

2020s – Pandemic and Inflation

By December 2020, the 30-year mortgage rate plummeted to a new historical low of 2.68%. Rates spent most of 2021 between 2.70% and 3.10%, giving many borrowers an opportunity to refinance or buy homes at the lowest rates ever recorded. In late 2022 and early 2023, inflation has caused mortgage rates to spike at a rapid rate, with rates reaching the 7% range.

Conclusion

Historical mortgage rates in Texas have fluctuated over the past 50 years, reflecting changes in the national and state economies. While rates have been historically high at times, the past few decades have seen relatively low and stable rates, making homeownership more affordable for many Texans. As always, it’s important to consider current market conditions and consult with a financial advisor before making any major financial decisions, including purchasing a home.