The U.S. Housing Market Hotness Index edged slightly lower to 84.44 for the week ending February 1, 2026, down from 84.76 the prior week. The dip may be small, but it reflects a market that’s still searching for momentum. On the affordability front, conditions look better than they did a year ago. Mortgage rates have come down, and home prices have largely flattened, easing some of the pressure on buyers. That said, the improvement is only drawing buyers back at the margins. A soft labor market continues to weigh on demand, keeping many would-be buyers cautious. Supply remains tight, and interest rates are a big reason why. Homeowners who locked in mortgage rates around 3% are still reluctant to list, limiting inventory and preventing a more meaningful rebalancing of the market.
As has been the case for much of the past year, the housing market is highly regional. Several pockets continue to stand out as especially competitive, including Monroe and Erie Counties in New York, Santa Clara and San Mateo Counties in California, and Hartford County in Connecticut, where steady demand meets constrained supply. Meanwhile, parts of Florida and Texas remain on the cooler end of the spectrum, with weaker activity and slower buyer engagement.
*Index values are subject to revision as deemed necessary, contingent upon the receipt of new or updated data.
