What’s the Average Mortgage Cost in 2025?

If you’re wondering how much people are shelling out for their mortgages in 2025, the short answer is a lot. With interest rates still higher than they were just a few years ago and home prices refusing to budge much, homeowners across the U.S. are feeling the pinch.

Mortgage Rates

Mortgage rates have come down slightly from their peak. The average rate for a 30-year fixed mortgage is now 6.79%, down from 7.09% at the start of the year. Meanwhile, 15-year fixed rates have dipped just under 6%, averaging 5.96%.

That’s definitely an improvement, but let’s be real—it’s still way higher than the sub-4% rates we saw between 2013 and 2019. If you’re buying a home now, you’re paying a lot more in interest compared to someone who bought just a few years ago.

So, what does that mean for payments? If you took out a $400,000 mortgage at today’s 6.79% rate, your monthly payment (not including taxes and insurance) would be around $2,648, according to Investipedia. That’s a serious chunk of change—especially when you consider that just a few years ago, the same loan would’ve had a payment closer to $2,000.

Mortgage Debt

Americans owe a staggering $12.59 trillion across nearly 85 million mortgages, with an average balance of about $148,222 per loan, according to Lending Tree. That means mortgage debt makes up a whopping 70.2% of all consumer debt in the U.S.

Financial experts usually recommend spending no more than 28% of your gross monthly income on housing costs, including your mortgage, taxes, and insurance. But with rising home prices and mortgage rates, many homeowners are spending well above that threshold—making it harder to keep up with other financial goals like saving for retirement or paying off debt.

Where You Live Makes a Huge Difference

As you might expect, mortgage payments vary wildly depending on where you live. Homeowners in the Pacific region have the highest average monthly payments at around $2,307.

At the same time, renting is looking more attractive in many parts of the country. An Investipedia report found that renting is cheaper than buying in 48 out of the 50 largest U.S. metro areas—with the median rent sitting at $1,703. That’s still high, but for a lot of people, it’s more manageable than a hefty mortgage payment.

Homebuyers Are Struggling to Keep Up

If you’re in the market for a home, you’ve probably already noticed that affordability is a huge issue. Prices are still high, inventory is tight, and mortgage rates are making it even harder to afford the home you want.

Take Northern California, for example—even families earning $270,000 per year in the region are struggling to upgrade to a larger home. And this isn’t just a problem in high-cost areas. Across the country, first-time buyers are finding it increasingly difficult to break into the market.

So, how much are people spending on mortgages in 2025? More than ever. Even with mortgage rates slightly lower than last year, high home prices and hefty monthly payments are making homeownership a challenge—especially for new buyers. With many households stretching their budgets just to afford a home, some are reconsidering whether buying is the best move right now.

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