The Housing Market Hotness Index held steady at 96.83 for the week ending May 18, 2025, a negligible change from 96.80 the week prior. The housing market is facing significant headwinds, largely due to mortgage rates hovering near 7%. These rates are climbing as treasury yields rise, stemming from a bleaker trade deficit outlook and anticipated inflation linked to tariffs. This broad economic uncertainty has eroded housing demand, a trend underscored by increasing inventory levels despite being in the busiest period for real estate. April 2025 saw the months’ supply of existing homes reach 4.5, the highest level since May 2020.
Geographically, Monroe County (NY), Kent County (MI), Oakland County (MI), Pierce County (WA), and San Mateo County (CA) led in activity, while Florida’s markets experienced the weakest conditions.
*Index values are subject to revision as deemed necessary, contingent upon the receipt of new or updated data.
