What is the average mortgage rate in Alabama in 2026?
Around 7.46% as of October 19, 2026, in line with national average.
Best Mortgage Rates Alabama 2026
Alabama remains one of the most affordable housing markets in the US, with an average home value of $236,453 in March 2026. Mortgage rates track closely with national benchmarks.
30-year fixed
7.46%
National avg
15-year fixed
6.82%
National avg
5/1 ARM
6.82%
National avg
| Product | Rate (APR) |
|---|---|
| 30-year fixed (national avg) | 7.46% |
| 15-year fixed (national avg) | 6.82% |
| 5/1 ARM (national avg) | 6.82% |
Rates verified Oct 21, 2026
Rates shown are national benchmark averages from the site data file, not live quotes from lenders. Confirm pricing with banks and brokers in Alabama. Not financial advice.
Alabama at a glance
- Average home price: $236,453
- State income tax: Yes (5% top rate)
- Land transfer tax: Yes ($0.50 per $500 of value, ~0.10%)
- Typical monthly payment: $1,317/mo on $236,453 with 20% down, 30-year term, at 7.46% — excludes taxes, insurance, and HOA.
Frequently Asked Questions
Does Alabama have a real estate transfer tax?
Yes — $0.50 per $500, approximately 0.10% of the sale price — one of the lowest transfer taxes in the US.
What is the average home price in Alabama in 2026?
$236,453 as of March 2026 — well below the national average.
How much do I need to earn to afford a home in Alabama?
To afford $236,453 with 20% down at 7.46%, you need approximately $55,000–$60,000 annual income.
Alabama mortgage calculator · Educational reference only. Not financial or lending advice.