The U.S. Housing Market Hotness Index fell to 90.23 for the week ending October 26, 2025, down from 92.0 the previous week. The decline suggests that even as mortgage rates dip to their lowest level in a year, uncertainty in the broader economy is muting what could have been a rebound in buyer activity.
According to Freddie Mac, the average 30-year fixed mortgage rate slipped to 6.17% as of October 30, 2025, continuing its steady decline from the highs earlier in the year. However, that drop may not go much further. The widely anticipated October Federal Reserve rate cut had already been priced into markets, leaving little room for additional downward movement in borrowing costs. The Fed has also signaled that another cut before year-end is not guaranteed, adding a layer of caution for both lenders and buyers. Despite the easing in rates, homebuyers are holding back. Many remain wary amid a weakening job market, persistent inflationary pressures, and heightened economic uncertainty. With layoffs ticking up and consumer sentiment slipping, fewer households are willing to take on a major financial commitment like a home purchase. As a result, the housing market continues to feel stuck, characterized by low sales activity and limited new listings.
Still, the picture varies widely by region. The hottest markets of the week were Monroe and Erie Counties in New York, Hartford County in Connecticut, San Mateo County in California, and Kent County in Michigan, that continue to attract buyers and see relatively faster sales. On the other hand, Travis and Bexar Counties in Texas, along with Broward, Palm Beach, and Miami-Dade Counties in Florida, ranked among the coolest markets, signaling slower buyer demand and lengthier listing times.
*Index values are subject to revision as deemed necessary, contingent upon the receipt of new or updated data.
