Garden City Telegram in Garden City, Kansas

Rising interest rates reshape loans and mortgage costs in 1980

The late 1970s and 1980s bring higher loan ceilings and rising rates. Prime lending nears 20 percent with forecasts of up to 22 percent, while mortgage rates drift toward 13 to 14 percent nationally. A $40,000 30 year loan would jump from 321.85 monthly at 9 percent to 505.78 at 15 percent, altering inflationadjusted consumer costs and behavior.