What are the monthly payments on a $400,000 mortgage after the Fed's rate cut?

Today's lower mortgage rates could make homeownership feasible for borrowers who have been waiting on the sidelines. Muhammad Aqib/Getty Images

After months of holding firm, the Federal Reserve lowered its benchmark rate by 25 basis points last week — the first cut of 2025. That move has created a compelling window for homebuyers and existing homeowners, as mortgage rates have now dropped to levels not seen since early 2022. At an average of 6.13% , the current 30-year fixed mortgage rate represents a dramatic shift from the environment borrowers faced throughout much of 2024, when rates regularly exceeded 7% and pushed many potential buyers to the sidelines.

This new rate environment has, perhaps unsurprisingly, sparked renewed activity across the housing market. And,