Mortgage rates continued to drift lower this week, with the average rate on 30-year fixed home loans dipping to 6.65% for the week ending August 20, down 2 basis points from 6.67% the previous week
While this second consecutive weekly drop provides a minor boost for home seekers, borrowing costs remain above their year-ago level of 6.58%.
So what does this mean for homebuyers? Using the Realtor.com®mortgage calculator, we can look at how the math works out for the median-priced home in the U.S.
All examples assume a 30-year fixed mortgage and include principal and interest only, excluding property taxes, homeowners insurance, and mortgage insurance.
Monthly mortgage payment today with a 20% down payment
For a homebuyer eyeing the median house price of $430,000, a 20% down payment results in a loan amount of $344,000.
At today’s 6.65% rate, the monthly principal and interest payment is approximately $2,208. This reflects a $5 monthly reduction from the previous week’s payment of $2,213.
However, compared to the 6.58% average from August 2025, which required a $2,192 monthly payment for a home at this price, today’s buyers are paying $16 more every single month.
Monthly mortgage payment today with a 3.5% down payment
The monthly costs have also increased slightly for those using FHA loans with a 3.5% down payment.
On a $430,000 home, an FHA borrower would finance roughly $414,950.
At today’s 6.65% rate, the monthly principal and interest payment comes to approximately $2,664. This reflects a $5 decrease from last week’s monthly cost of $2,669.
Compared to the 6.58% rates of August 2025, where the monthly payment for this loan amount sat at $2,645, today’s FHA borrowers are paying an extra $19 in interest every month.
However, looking back at the October 2023 peak of 7.79%, where the payment for a home at this price reached $2,984, today’s monthly payment still offers $320 in relief.
Long-term savings over 30 years
The long-term <a href="https://bitcomme.com/financial-reporting-developments-ebp-fasb-sec-updates/” title=”Financial Reporting Developments: EBP, FASB, & SEC Updates”>financial picture highlights how these borrowing costs accumulate over time.
A buyer with a 20% down payment at today’s 6.65% rate will pay a total of $795,009 in principal and interest over the life of the mortgage. While current rates remain elevated compared to last summer, this sum still represents a distinct contrast to the October 2023 peak of 7.79%, when the total cost for that same $344,000 loan would have reached $890,630.
FHA borrowers see a similar trajectory of long-term figures.
Financing the current median-priced home at today’s 6.65% rate results in a lifetime payment of $958,980 for principal and interest. If that same loan had been locked in at the 7.79% peak in late 2023, the total cost would have climbed to $1,074,323.
This represents a total long-term savings of $115,343 for FHA buyers.
Dina Sartore-Bodo is the senior advice editor at Realtor.com covering real estate news, personal finance trends, and interior design. She previously served as the managing editor at HollywoodLife.com, the executive editor at PerezHilton.com, and the managing editor at The Hollywood Gossip. Her work has also appeared on MSN, Yahoo News, and BlogHer. She is a proud graduate of Emerson College in Boston and is originally from New Jersey.
