Mortgage rates continued their sharp climb this week, with the average rate on 30-year fixed home loans reaching 7.40% for the week ending Oct. 8, up 12 basis points from 7.28% the previous week, according to Freddie Mac.
This marks another substantial increase in borrowing costs, further tightening affordability for fall home shoppers. For perspective, rates averaged 6.30% 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 7.40% rate, the monthly principal and interest payment is approximately $2,382. This reflects a $28 monthly increase from the previous week’s payment of $2,354.
Compared to the 6.30% average from October 2025, which required a $2,129 monthly payment for a home at this price, today’s buyers are paying $253 more every single month.
Monthly mortgage payment today with a 3.5% down payment
The monthly costs have also risen markedly for those utilizing FHA loans with a 3.5% down payment.
On a $430,000 home, an FHA borrower would finance roughly $414,950.
At today’s 7.40% rate, the monthly principal and interest payment comes to approximately $2,873. This reflects a $34 increase from last week’s monthly cost of $2,839.
Compared to the 6.30% rates of October 2025, where the monthly payment for this loan amount sat at $2,568, today’s FHA borrowers are paying an extra $305 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 $111 in relative relief.
Long-term savings over 30 years
The long-term financial picture illustrates how this continued upward movement expands total borrowing costs over a 30-year term.
A buyer with a 20% down payment at today’s 7.40% rate will pay a total of $857,443 in principal and interest over the life of the mortgage.
While recent rate hikes have significantly eaten into long-term savings, this total still represents a 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 $33,187 in interest charges over the 30-year loan life.
FHA borrowers see a similar trajectory of long-term figures. Financing the current median-priced home at today’s 7.40% rate results in a lifetime payment of $1,034,291 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 $40,032 for FHA buyers.
