The Housing Market Hotness Index rose to 99.45 for the week ending May 24, 2026, up from 99.15 the previous week. While overall housing activity remains subdued, the market is showing modest improvement compared to this time last year. Existing home sales in April were higher than a year earlier, and affordability has improved slightly as mortgage rates have eased. During May 2026, the average 30-year fixed mortgage rate was approximately 40 basis points lower than it was in May 2025, helping to bring some buyers back into the market. Despite these improvements, housing activity remains constrained. Affordability challenges continue to weigh on demand, and broader economic uncertainty including concerns surrounding the ongoing war in the Middle East has made some households hesitant to make large financial commitments.
At the local level, housing market performance continues to vary significantly across regions. San Francisco County, California, along with Jackson and St. Louis Counties in Missouri, Marion County, Indiana, and Cuyahoga County, Ohio, rank among the strongest-performing markets in the country. In contrast, conditions remain softer in Miami-Dade and Palm Beach Counties in Florida, as well as Bexar and Travis Counties in Texas and Davidson County, Tennessee.
*Index values are subject to revision as deemed necessary, contingent upon the receipt of new or updated data.
