The Housing Market Hotness Index continued its downward trend, falling further to 91.05 for the week ending January 12, 2025. This marks a new low, surpassing the previous low of 91.75 reached last January. Contributing to this decline is a combination of factors. The 30-year mortgage rate was 6.93% on January 9, 2025, compared to 6.66% on January 11, 2024, increasing borrowing costs. Meanwhile, home prices have continued to climb, further exacerbating affordability challenges. This confluence of higher interest rates and rising home prices has dampened buyer enthusiasm. Furthermore, the typical seasonal slowdown in housing activity is also contributing to the cooling market sentiment. The top five counties with the highest market “hotness” were Monroe County (NY), Santa Clara County (CA), Snohomish County (WA), Middlesex County (MA), and Fairfax County (VA).
*Index values are subject to revision as deemed necessary, contingent upon the receipt of new or updated data.