The U.S. Housing Market Hotness Index rose to 89.84 for the week ending March 8, 2026, up from 88.29 the previous week, signaling growing optimism as the spring homebuying season begins; pending home sales were trending higher while housing inventory remained relatively tight. However, some new headwinds have begun to emerge. Mortgage rates have started climbing again, reaching above 6.2% according to some reports. The ongoing conflict in the Middle East has pushed oil prices higher, raising concerns that inflation may accelerate. With inflation risks increasing, the Federal Reserve is unlikely to cut interest rates at its upcoming meeting, which could keep borrowing costs elevated. At the same time, signs of a softening labor market may limit housing demand in the months ahead.
At the regional level, Santa Clara, San Francisco, San Mateo, and Alameda Counties in California remain some of the strongest housing markets nationwide, joined by Monroe County, New York. By comparison, housing activity has been more tempered across parts of Florida and Texas. Additionally, the District of Columbia and Honolulu County, Hawaii continue to experience comparatively softer market conditions relative to the country’s top-performing housing markets.
*Index values are subject to revision as deemed necessary, contingent upon the receipt of new or updated data.
