The U.S. Housing Market Hotness Index ended January 2026 at 84.76, down from 87.12 in the first week of the month, signaling a market that continues to remain firmly in the cool zone. This comes even as mortgage rates have edged lower and now sit roughly 85 basis points below where they were a year ago. Still, the housing market remains sluggish. While unusually cold winter weather across large parts of the country likely weighed on activity, the deeper drag continues to be affordability. High home prices and borrowing costs are keeping buyers on the sidelines, while many sellers remain reluctant to list either because rates are not low enough to justify giving up existing mortgages or because market conditions no longer support their desired asking prices.
Regionally, market conditions remain highly uneven. Monroe and Erie Counties in New York, San Mateo County in California, and Essex and Middlesex Counties in Massachusetts ranked among the hottest housing markets in the country, supported by relatively steady demand and constrained supply. At the other end of the spectrum, parts of Florida and Texas continue to face pressure, with Miami-Dade and Broward Counties in Florida, Travis and Bexar Counties in Texas, and the District of Columbia ranking among the weakest markets.
*Index values are subject to revision as deemed necessary, contingent upon the receipt of new or updated data.
