If you’ve been keeping an eye on the housing market lately, it’s easy to feel a bit of “rate shock.” After the record-breaking lows we saw just a few years ago, seeing numbers hovering around 6% can feel like a steep mountain to climb. At Perry Johnson Mortgage Company, we hear it every day: “Rates are just too high right now.”

But here’s what the headlines leave out: rates around 6% aren’t high by a historical standard. They just feel that way because we’re comparing them to one of the most unusual lending environments in American history.

To put today’s market in proper perspective, we need to go back, specifically to the 1970s and 80s, and look at what drove rates then, and what it meant for everyday buyers.

To understand why, we have to look back at where we’ve been, specifically to the 1970s and 80s, and look at the “why” behind the numbers.

The “Wild West” of the 1980s: When 18% Was Reality

Imagine sitting down at a closing table in 1981. You’ve found the perfect home, but there’s a catch: your mortgage interest rate is 18.63%.

It sounds like a typo today, doesn’t it? But for many of our parents or grandparents, that was the reality. During the late 70s and early 80s, the U.S. was battling “The Great Inflation.” To stop the economy from spiraling, the Federal Reserve pushed rates to heights that would make today’s buyers faint.

Throughout the 1970s, a “good” rate was often between 8% and 12%. By the time we hit the mid-80s, people were celebrating when rates “dropped” back down to 10%. Today’s buyers’ wince at 6.2%. In 1985, that same rate would have felt like winning the lottery.

Why Rates Aren’t Following the Old Script

So, if inflation has been a headline topic recently, why aren’t we seeing 12% or 15% today? There are a few key reasons why rates haven’t climbed as high as historical “rules” suggest they should:

• The Global Bond Market: Today’s financial world is more connected than it was forty years ago. Investors around the globe look at U.S. mortgage-backed securities as a safe haven. This high demand helps keep a “ceiling” on how high rates go, even when the Fed is making moves.
• Economic Resilience: While the 80s were defined by “stagflation” (stagnant growth plus high inflation), our current economy has shown a surprising amount of grit. This stability allows the market to find a “new normal” around 5% or 6% without needing to go into the double-digit “emergency mode” of the past.

The Cost of Waiting vs. The Cost of Borrowing

One of the biggest mistakes prospective homeowners make is waiting for a “perfect” rate that may never return. Those 2.5% or 3% rates from 2020 and 2021 were a historical anomaly, a once-in-a-lifetime event triggered by a global crisis.

When you compare 6% to 3%, it feels high. But when you compare 6% to the 50-year average of roughly 7.74%, you start to see the rates are in a very healthy sweet spot.

Here is the reality of the 2026 market:

• Inventory is the real hurdle: Because so many people are waiting for rates to drop, there is pent-up demand. The moment rates dip even slightly, a wave of buyers rushes in, driving home prices up.
• Equity starts on day one: Every month you spend waiting for a 1% drop in rates is a month you aren’t building equity. In many cases, the appreciation of the home’s value far outpaces the “savings” you might get by waiting for a slightly lower rate.
• You can’t “refinance” the purchase price: As the saying goes, “Marry the house, date the rate.” If rates do drop significantly in the future, we can help you refinance. But you can’t go back and change the price you paid for the home if it skyrockets because you waited.

The Bottom Line

Mortgage rates aren’t “high” they’re just normal again. After a decade of ultra-low borrowing costs, today’s environment can feel like a shock. But it’s actually a sign of a more stable, mature economy returning to its natural footing.

Era	Average Rate	Context
Early 1980s	16% – 18%	Peak Inflation Era
The 1990s	7% – 9%	Post-Inflation Stabilization
The 2010s	3.5% – 5%	Post-Recession Recovery
Today (2026)	5.8% – 6.4%	The New “Sustainable” Normal

The better question was never “are rates too high?” It’s: does buying a home make sense for my life and my finances right now? For many people, even at 6% or 7%, the answer is yes, especially when you factor in the equity you’ll build over time, the stability of a fixed payment that won’t rise the way rent can, and the simple fact that housing has historically been one of the most reliable long-term investments an average person can make.

So don’t let the headlines talk you out of a home that fits your family’s needs. If you can afford the monthly payment and you’ve found the right house, the best time to buy is usually when you’re ready.

If you want to see what your specific numbers look like, or how today’s rates fit your long-term financial picture, let’s talk. We’ll skip the jargon, give you the straight facts, and help you move forward with confidence.