The Housing Market Hotness Index reached 99.15 for the week ending May 17, 2026, continuing a steady upward trend that began at the end of February. So far, the 2026 spring housing season has outperformed the slower pace seen in 2025, though activity remains well below the stronger markets of 2023 and 2024. A key reason for the improvement is that mortgage rates are modestly lower than they were a year ago, helping bring buyers back into the market. At the same time, buyers and sellers appear to be becoming more aligned on pricing expectations, allowing more transactions to move forward. While market activity has improved, home price appreciation has continued to moderate.
Even so, the broader housing market remains constrained by several structural challenges. Affordability pressures, economic uncertainty, and the ongoing lock-in effect continue to limit both supply and demand. It also remains uncertain how long the recent momentum can persist amid ongoing inflation concerns, the Iran War, and renewed upward pressure on mortgage rates.
At the local level, housing conditions continue to diverge across markets. Counties such as San Francisco and San Mateo in California, along with Jackson and St. Louis Counties in Missouri and Marion County, Indiana, are among the strongest-performing housing markets in the country, supported by relatively stronger demand and tighter inventory conditions. By comparison, activity remains softer in markets such as Miami-Dade and Palm Beach Counties in Florida, as well as Bexar County, Texas, and Davidson County, Tennessee.
*Index values are subject to revision as deemed necessary, contingent upon the receipt of new or updated data.
