The U.S. Housing Market Hotness Index fell to 91.18 for the week ending September 7, 2025, down from 96.28 the previous week—marking another step deeper into the cool zone. All eyes are now on the Federal Reserve, which is widely expected to announce its first interest rate cut in a year within days. Mortgage rates have been easing and now sit at an 11-month low of 6.35% for a 30-year fixed loan (Freddie Mac). While these lower rates have nudged some buyers into action, affordability remains a major hurdle. Home prices are still elevated, and persistent weakness in the labor market—combined with uncertainty about job prospects—is causing many would-be buyers to postpone purchases.
Regional trends remain mixed. Northeastern and Midwestern metros continue to be the most competitive, supported by relative affordability and constrained inventory. By contrast, southern Florida markets are among the weakest, burdened by high months’ supply and extended days on market. In Florida in particular, homeowners also face sharply higher insurance premiums and property taxes, amplifying the affordability challenge despite the recent dip in mortgage rates.
*Index values are subject to revision as deemed necessary, contingent upon the receipt of new or updated data.
