Mortgage rate history · 2018
Mortgage Rates in 2018
The 30-year fixed mortgage averaged 4.54% in 2018, ranging from 3.95% to 4.94% over the year. Here's where that sits in five decades of rates, how the year unfolded, the story behind it, and what it meant for a monthly payment and for how much home a buyer could afford.
- 2018 average (30-yr) 4.54% annual average
- Year's high 4.94% around November
- Year's low 3.95% around January
- 15-yr average 4.00% annual average
What happened to mortgage rates in 2018
The Fed raised rates four times as the economy ran hot, lifting the 30-year fixed to its highest level in years.
In 2018, the 30-year fixed-rate mortgage averaged 4.54%, ranging from a low of 3.95% to a high of 4.94% over the year, up from 3.99% in 2017. That made it the 11th-lowest of the 56 years on record. For comparison, the 30-year fixed sits at about 6.49% today.
How 2018 unfolded
The 30-year fixed climbed through 2018, starting the year around 4.03% and ending near 4.64%. Within the year, rates peaked near 4.87% in November and bottomed around 4.03% in January. Here is the quarter-by-quarter average:
What a 2018 mortgage actually cost
A rate is abstract until it's a payment. Here's the monthly principal and interest a buyer in 2018 would have locked in at that year's average rate of 4.54%, across a few common loan sizes (30-year term):
Those are principal and interest only — taxes and insurance sit on top. At today's 6.49%, the same $200,000 loan runs about $1,263 a month, so 2018's rate was cheaper than today's. To price your own number, use the mortgage calculator.
What 2018's rate could buy
The flip side of the payment is buying power: at 2018's 4.54%, here's how large a 30-year mortgage a given monthly principal-and-interest budget would have supported — and what the same budget buys at today's 6.49%:
Lower rates stretch the same payment across a bigger loan, which is exactly why cheap-money years tend to push home prices up — buyers can finance more for the same monthly cost.
15-year vs 30-year in 2018
In 2018 the 15-year fixed averaged 4.00%, against 4.54% for the 30-year — a gap of 0.54 points. On a $300k loan, the 15-year payment would have been about $2,219 a month versus $1,527 for the 30-year: higher monthly, but far less interest over the life of the loan — roughly $99k versus $250k in total interest. The shorter term trades a bigger payment for tens of thousands saved.
If you bought a home in 2018
Looking back, anyone who locked a 30-year fixed in 2018 is sitting on a rate well below today's 6.49% — a strong reason to stay put rather than refinance. Either way, 2018's average of 4.54% is a useful yardstick against the 6.49% on offer now — and a reminder that the rate you lock is, for most buyers, a bigger long-run cost than the price you negotiate.
2018 in the bigger picture
Across the full 1971–2026 record, the 30-year fixed has averaged about 7.67%, so 2018 ran below that long-run norm. Within the 2010s, mortgage rates averaged roughly 4.09%, and 2018 sat above its own decade. Five years earlier, in 2013, the average was 3.98%. The following year, 2019, the average fell to 3.94%. Inflation drives mortgage rates — see what inflation did in 2018.
This is one year out of the whole story. For the complete history — every year since 1971, the all-time high and record low, the decade-by-decade view, and what drives rates over time — see historical mortgage rates, 1971–today.
Mortgage rates in 2018 — FAQ
What was the average mortgage rate in 2018?
The 30-year fixed-rate mortgage averaged 4.54% in 2018, based on Freddie Mac's weekly Primary Mortgage Market Survey. The 15-year fixed averaged 4.00%.
What were the highest and lowest mortgage rates in 2018?
In 2018 the 30-year fixed ranged from a low of 3.95% to a high of 4.94% — a swing of 0.99 percentage points across the year, peaking around November and bottoming around January.
Were mortgage rates high or low in 2018?
Measured against the full 1971–2026 record, 2018's 4.54% average was the 11th-lowest of the 56 years on record, and below the long-run average of 7.67%.
How much was a mortgage payment in 2018?
At 2018's average rate of 4.54%, the monthly principal and interest was about $1,018 on a $200,000 loan and $1,527 on a $300,000 loan (30-year term, taxes and insurance not included).
Why were mortgage rates low in 2018?
The Fed raised rates four times as the economy ran hot, lifting the 30-year fixed to its highest level in years.
How do 2018 mortgage rates compare with today?
In 2018 the 30-year fixed averaged 4.54%, versus about 6.49% today — a difference of 1.95 points. On a $200,000 loan that is roughly $1,018 versus $1,263 a month in principal and interest.
