Why High Mortgage Rates Continue to Slow the U.S. Housing Market
The U.S. Housing Market Hotness Index declined again, falling to 97.78 for the week ending July 12, 2026, from 98.10 the previous week, signaling that the U.S. housing market continues to struggle. Pending home sales declined in June from both the previous month and a year earlier as high mortgage rates, now at their highest level in nearly a year, and elevated home prices continue to strain housing affordability. With fewer homes going under contract, buyers have more negotiating power while sellers may need to adjust asking prices to remain competitive.
Although the national housing market remains subdued, conditions vary widely across local markets. Counties demonstrating stronger buyer demand and relative resilience include San Francisco County, California; Jackson County, Missouri; Providence County, Rhode Island; Montgomery County, Pennsylvania; and Cuyahoga County, Ohio. In contrast, Miami-Dade and Palm Beach Counties, Florida; Bexar and Travis Counties, Texas; and Davidson County, Tennessee continue to experience weaker housing demand, contributing to slower market activity.
*Index values are subject to revision as deemed necessary, contingent upon the receipt of new or updated data.
