Reena Agrawal

Research Economist

Line chart image showing Housing Market Hotness Index May 25, 2025

Housing Market Hotness Index May 25, 2025

The Housing Market Hotness Index saw a slight decrease to 96.42, indicating a struggling market due to persistent near 7% mortgage rates, affordability issues, and economic uncertainty, particularly regarding job security. Consequently, inventory is accumulating, with significantly more sellers than buyers, leading to a disappointing spring season, as active markets in some northern states contrast with weaker conditions in Florida and Travis County, TX.

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Line chart image showing Housing Market Hotness Index May 18, 2025

Housing Market Hotness Index May 18, 2025

The U.S. housing market shows signs of stagnation, with the Housing Market Hotness Index remaining flat for the week ending May 18, 2025. This struggle is largely attributed to persistently high mortgage rates (near 7%)and inflationary concerns from tariffs, all contributing to economic uncertainty. As a result, inventory levels are increasing even during the peak season, with April 2025’s months’ supply of existing homes (4.5) reaching its highest since May 2020.

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