Rates took another minor dip this week, yet remain steady at levels not seen in over a year, much to buyers dismay.
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 Aug. 20, down 2 basis points from 6.67% the previous week, according to Freddie Mac.
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 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.
(Realtor.com) By securing a mortgage at today’s rate instead of that peak, a homebuyer effectively avoids $95,621 in interest charges over the 30-year term.
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.