What 25 basis points does to a $320,000 mortgage
Twenty-five basis points is 0.25 percentage point. It is the usual FOMC step. It is also a round move in a mortgage quote. Here is that step on a $320,000 30-year loan, principal and interest only, around this week’s Freddie Mac average of 7.24%.
| Rate | Monthly P&I | Versus 7.24% |
|---|---|---|
| 6.99% | $2,127 | −$54 / month |
| 7.24% (this week’s survey) | $2,181 | — |
| 7.49% | $2,235 | +$55 / month |
Over 360 payments, a quarter point at this balance is tens of thousands of dollars of extra or avoided interest if the rate is locked for the whole term. Most people do not keep a 30-year loan for 30 years. The monthly column is the one that hits the checking account.
This is not the same as a 25-basis-point Fed hike
The funds rate and the 30-year mortgage are different instruments. A 25-basis-point FOMC step does not add 25 basis points to every quote that afternoon. Sometimes the 30-year has already moved more than that in the prior month. Sometimes it fades after the press conference. The table above is what a mortgage-rate quarter point is worth. For the last decision, see September 16, 2026.
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Rate backdrop: Freddie Mac PMMS, week of October 29, 2026. Payments are standard amortization.