Mortgage Applications Are Rising—Here’s Why That Matters (Especially in San Antonio)

by Kristen Smith, Realtor

Mortgage Applications Are Rising—Here’s Why That Matters (Especially in San Antonio)

You’ve probably seen the headlines: mortgage rates are still hovering above 6.5%, affordability remains tight, and competition can feel fierce. But beneath the surface, there are signs of life—and in San Antonio, the movement is worth watching.

While the national conversation focuses on what’s not working in the market, savvy buyers and investors are starting to notice the shift: mortgage purchase applications are rising—and that could signal a meaningful change ahead.

What Are Mortgage Purchase Applications?

Let’s keep it simple: mortgage purchase applications are loan requests from buyers looking to purchase a home. It’s one of the best early indicators of what’s about to happen in the housing market because it looks 30 to 90 days ahead of actual sales.

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

✅ 4 positive weeks
➖ 3 flat weeks
❌ 3 negative weeks

That may not seem revolutionary, but considering how stagnant things were this time last year, the year-over-year growth in applications is a big deal. More people are getting serious about buying—and they’re starting to make moves.

What Happened in 2023 and 2024? A Quick Recap

In both 2023 and 2024, San Antonio saw an early wave of buyer activity… and then a cooldown.

The culprit? Mortgage rates.

Rates spiked to over 8% in late 2023, then dipped to around 6.63% in January 2024—creating just enough breathing room for buyers to jump back in briefly. But once rates climbed again, that momentum faded.

Why 2025 Feels Different (Especially in San Antonio)

Here’s the kicker: mortgage applications are trending up in 2025, and rates haven’t even dropped significantly yet.

As of mid-March, the national average for a 30-year fixed mortgage sits at around 6.7%. That’s still higher than what many buyers would prefer, but it feels way more manageable than 8%.

In San Antonio, we’re seeing this play out on the ground. Homes are sitting on the market longer (average of 81 days), and inventory is higher than it’s been in recent years—meaning buyers finally have options again. Combine that with rising mortgage applications, and it’s a signal that the local market may be heating up again, even if it’s not a full-blown frenzy.

“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. It was a long time ago since I've been able to say that.”
— Logan Mohtashami, HousingWire Daily Podcast

San Antonio Snapshot: What This Means for Local Buyers

🏡 More inventory means less competition.
📉 Steady rates could bring more buyers off the sidelines.
💼 Job growth in tech and healthcare continues to attract new residents.
🔄 Buyers are re-entering the market even without huge rate drops.

If mortgage rates dip closer to 6% and stay there, San Antonio could see another mini-surge in activity, especially in buyer-friendly neighborhoods like Uptown, Government Hill, and Midtown.

Final Thoughts

Mortgage rates are still high—but buyers are showing up anyway. For those who’ve been waiting for the market to swing in their favor, this shift in mortgage application trends is a sign to start paying attention.

In San Antonio, where housing is still relatively affordable compared to Austin and Dallas, this could be the beginning of a new window of opportunity.

Thinking of buying in San Antonio this spring?
Let’s talk about where the market is headed, how to navigate changing conditions, and what opportunities are emerging right now. Reach out today and let’s make a plan.