In today’s housing market, conversations around mortgage rates are everywhere — and often, they're painted in a less-than-optimistic light. The common refrain? That rates are too high. But when viewed through a historical lens, the story becomes much more nuanced.

According to the Alabama Association of REALTORS® March Economic and Real Estate Report, the average 30-year fixed-rate mortgage recently settled around 6.6%. While that may seem elevated compared to the historically low rates observed during the COVID-19 pandemic, it is consistent with the 40-year average of 6.56% and below the 50-year average of 7.68%.

In fact, mortgage rates peaked at an unprecedented 18.63% in 1981 and remained above 10% for much of the following decade. The pandemic-era lows of 2-3% were historically exceptional — not indicative of a typical rate environment.

“Many would-be homebuyers might understandably think they should wait until mortgage rates return to pre-pandemic levels,” said AAR economist David Hughes. “But as the historical data suggest, those very low rates were largely by-products of once-in-a-lifetime disruptions. Waiting for lower rates might not be the best strategy, especially for consumers who aren't currently building equity in homeownership.”

As buyers evaluate their options, it’s helpful to understand that mortgage rates naturally fluctuate over time and are influenced by a wide range of economic factors. While short-term comparisons can spark hesitation, viewing rates in a broader context offers clarity — and confidence.

Despite recent rate movements, Alabama’s real estate market continues to show resilience. In March, home sales rose 23.2% year-over-year, and the median sales price increased 13.4% compared to the same period in 2024. Inventory also remains strong, with more than 18,000 active listings statewide, a 26.2% increase from last year.

When consumers view mortgage rates in context, they’re better equipped to make informed decisions that align with their goals. While interest rates matter, they’re just one piece of the puzzle. For many, the best time to buy is less about chasing a number — and more about meeting lifestyle needs, financial readiness, and local market opportunities.

“Just because rates aren't where they were a few years ago doesn't mean buyers won’t have future opportunities to refinance,” Hughes said. “In the meantime, homeownership offers something renters can’t build: equity.”