Saturday, October 13, 2018

US Inflation History


Annual US Inflation in 1950 was 1.1%. It remained low from 1% to 2% from 1950 to 1967 inflation rose to 3%, 4% and 5% from 1967 to 1970.  In 1973 it rose to 6.2%, then 11% in 1974 and 9.2% in 1975. In 1976 it dropped back to 5.75%, then 6.5% in 1977, 7.6% in 1978, 

Inflation jumped to 11.22% in 1979 and 13.58% in 1980. Then settled back to 10.35% in 1981 and 6.16% in 1982.

From 1983 to 1993, inflation was in the 3% to 4% range. In 1994 it dropped under 3% and has ranged from 2% to 3% to present in 2018.

Mortgage rates and home prices followed inflation during the period from 1950 to present.  In 1950, house prices ranged from $5000 to $10,000 and mortgage rates were 4% or less. In 1965, house prices ranged from $20,000 to $30,000 and mortgage rates remained at 4%. By 1975, house prices ranged from $40,000 to $60,000 and mortgage rates moved to 6%. By 1983, house prices ranged from $80,000 to $150,000 and mortgage interest rates were 13%. By 1987 house prices ranged from $120,000 to $300,000 and interest rates had settled back to 10%.

Norb Leahy, Dunwoody GA Tea Party Leader

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