The U.S. Housing Market Hotness Index entered the “cool zone,” falling to 93.97 for the week ending July 27, 2025, down from 95.80 the previous week. This housing market is not expected to pick up momentum this year. Elevated mortgage rates, which are projected to remain high over the next year, coupled with slowly rising home prices, are deterring potential buyers. Many sellers are responding by withdrawing their properties from the market. Adding to these pressures is the prevailing economic uncertainty in the U.S., particularly concerning inflation and unemployment.
However, the national picture doesn’t tell the whole story; regional markets are behaving quite differently. While some metropolitan areas in the Northeast continue to experience a brisk housing market, others, particularly in Florida and Texas, are showing significant weakness.
*Index values are subject to revision as deemed necessary, contingent upon the receipt of new or updated data.
