Mortgage rates fell again for the second time in two months. But how long will the decline last—and is it enough for buyers to start buying?
Mortgage rates continued to ease this week, with the average rate on 30-year fixed home loans dropping to 7.24% for the week ending Oct. 29, down 8 basis points from 7.32% the prior week, according to Freddie Mac.
This second consecutive weekly decline provides an extended breather for homebuyers following the steep multiweek climb earlier this autumn.
However, borrowing costs remain significantly higher than they were a year ago, when rates averaged 6.17% during the same period in 2025.
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 7.24% rate, the monthly principal and interest payment is approximately $2,344.
This reflects a $19 monthly reduction from the previous week’s payment of $2,363.
Compared to the 6.17% average from October 2025, which required a $2,100 monthly payment for a home at this price, today’s buyers are paying $244 more every single month.
Monthly mortgage payment today with a 3.5% down payment
The monthly costs have also risen markedly 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 7.24% rate, the monthly principal and interest payment comes to approximately $2,828.
This reflects a $22 decrease from last week's monthly cost of $2,850. Compared to the 6.17% rates of October 2025, where the monthly payment for this loan amount sat at $2,533, today’s FHA borrowers are paying an extra $295 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 $156 in relief.
Long-term savings over 30 years
The long-term financial picture shows how this continued rate decline improves overall borrowing costs over a 30-year term.
A buyer with a 20% down payment at today’s 7.24% rate will pay a total of $843,967 in principal and interest over the life of the mortgage. While current borrowing levels remain elevated compared to last year's baselines, this total 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.
By securing a mortgage at today’s rate instead of that peak, a homebuyer effectively avoids $46,663 in interest charges over the 30-year loan life.
(Realtor.com) FHA borrowers see a similar trajectory of long-term figures. Financing the current median-priced home at today's 7.24% rate results in a lifetime payment of $1,018,036 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 $56,287 for FHA buyers.
While the gap above year-ago rates continues to keep pressure on household budgets, back-to-back weekly declines are helping stabilize monthly payments for buyers navigating the late-fall market.