The U.S. Housing Market Hotness Index continued its decline, falling to 95.80 for the week ending July 20, 2025, down from 96.27 the previous week. This sustained slump is attributed to high rates and prices, increasing inventory, and fewer sales, as buyers remain hesitant due to unaffordable monthly payments and an uncertain economic outlook. Neither mortgage rates nor prices are expected to significantly decrease this year to offer substantial relief.
Housing market activity saw its strongest performance in the Northeast and Midwest markets, while regions in Florida and Texas experienced the weakest activity.
*Index values are subject to revision as deemed necessary, contingent upon the receipt of new or updated data.
