The U.S. Housing Market Hotness Index slipped to 92.68 for the week ending August 31, 2025, marking the fourth straight week in the “cool” zone. Although mortgage rates are edging lower on expectations of a Federal Reserve rate cut, they remain too elevated to meaningfully spur demand or unlock rate-locked sellers. Uncertainty is also weighing on activity, with many potential buyers and sellers pausing amid concerns over the broader economy and job security. A growing share of households expects both interest rates and home prices to decline further, reinforcing a “wait-and-see” attitude.
In the Sunbelt, homes are lingering on the market longer, prompting price corrections in several metros. By contrast, parts of the Northeast continue to see brisk competition, where relative affordability and tight supply sustain multiple-offer scenarios. Other regions are gradually moving toward a more balanced environment as rising inventory chips away at the strong seller’s advantage that defined the last few years.
*Index values are subject to revision as deemed necessary, contingent upon the receipt of new or updated data.
