Mortgage Applications Are Rising—Here’s What It Means for Montgomery Alabama Homebuyers

If you’ve been paying attention to housing headlines, you’ve probably heard about high mortgage rates and limited inventory. But beneath the surface, there’s something shifting—especially in Montgomery Alabama real estate.

Mortgage purchase applications are up year over year, and while rates are still hovering above 6.5%, demand is showing early signs of life. It’s not a housing boom—but it’s not nothing either.

Let’s break down what this trend means if you're considering buying a home in Montgomery Alabama this spring.

What Are Mortgage Purchase Applications?

A mortgage purchase application is what a buyer submits when applying for a loan to buy a home. These applications are one of the best forward-looking indicators in real estate—they offer a glimpse at what could happen in the market 30 to 90 days from now.

In the first 10 weeks of 2025, here’s what we’ve seen:

• 4 positive weeks

• 3 flat weeks

• 3 negative weeks

It might not sound dramatic, but this is the first time in a long while that we’re seeing consistent year-over-year growth—a clear signal that more buyers are getting serious.

If you’re in the market for Montgomery Alabama homes for sale, this data suggests competition may start picking up soon.

Early Home Sale Peaks in 2023 and 2024

In both 2023 and 2024, the housing market saw a brief burst of activity early in the year. Why? Mortgage rates dipped just enough to give buyers some breathing room.

For example, in early 2024, rates dropped to around 6.63% after peaking above 8% in 2023. That window sparked a quick rise in sales before things cooled down again.

The takeaway? Even small changes in mortgage rates have a big impact—especially in a market like Montgomery Alabama, where affordability still matters.

Why 2025 Feels Different for Montgomery Alabama Real Estate

This year, purchase applications are rising without a major rate drop, which is unusual—and encouraging.

As of mid-March 2025, the average 30-year fixed mortgage rate is about 6.7%, which is still high by historical standards. But after rates touched 8% last fall, this feels far more manageable for many buyers.

“Unlike the last few years when rates have gone up and purchase application data is negative, it's still positive on the weeklies and the year over year.”
— Logan Mohtashami, HousingWire Daily Podcast

This growing interest could signal a stronger-than-expected spring—especially in regional markets like Montgomery Alabama, where demand remains steady.

What This Means for Buyers Working with a Montgomery Alabama Loan Officer

If you're thinking about buying a home, this uptick in mortgage applications is a sign that now may be a good time to act, before more buyers enter the market. Connecting with a trusted Montgomery Alabama loan officer early in the process can help you:

• Understand your borrowing power

• Get pre-approved with confidence

• Explore loan programs tailored to military families or first-time buyers

• Lock in the best available rates

Whether you're buying your first home or upgrading, having the right lender in your corner matters.

Final Thoughts

The Montgomery Alabama real estate market is waking up—and buyers are taking notice.

Even with rates still above 6.5%, mortgage purchase applications are climbing, showing renewed buyer interest and growing momentum heading into spring. If mortgage rates dip closer to 6%, demand could accelerate.

Bottom line: If you've been waiting for a window to make a move in Montgomery Alabama, this spring might be it.

Have questions? Want to connect with a Montgomery Alabama loan officer or start your home search? I’m here to help when you're ready.