The U.S. Housing Market Hotness Index edged up to 90.11 for the week ending December 7, 2025, a modest increase from 89.35 the week prior, but the market remains firmly in the cool zone. The broader housing landscape is still stuck in neutral, held back by the same forces that have shaped recent months. Many sellers are pulling listings if they can’t secure near-asking prices, while others are reducing prices; yet even those cuts aren’t enough to entice buyers who remain wary amid economic and labor-market uncertainty.
Despite the Fed’s third rate cut last week, the 30-year fixed mortgage rate is still above 6.2 percent, offering limited relief for would-be buyers. Looking ahead, affordability may improve slightly in 2026 if mortgage rates ease further and home price appreciation slows to a pace below average wage growth.
Market performance, however, continues to vary sharply by region. Several pockets of the Northeast and Midwest such as Monroe County in New York, Hartford County in Connecticut, Essex and Norfolk Counties in Massachusetts, and San Mateo County in California remain among the nation’s hottest markets, supported by relatively strong demand and tight inventory. By contrast, many parts of Florida and Texas continue to rank as the coolest markets in the country, weighed down by softer demand and growing inventory.
*Index values are subject to revision as deemed necessary, contingent upon the receipt of new or updated data.
