The U.S. Housing Market Hotness Index slipped to 88.83 for the week ending October 25, 2026, compared with 89.81 the previous week, and remained below its year-earlier reading. With mortgage rates holding above 7% and home prices showing little downward movement, the cost of homeownership remains prohibitive for many households. Job market concerns and an uncertain economic outlook are further discouraging prospective buyers from making major financial commitments. The resulting imbalance is increasingly evident in housing inventory, which reached 1.6 million homes in September 2026, its highest level since November 2019 (NAR data). Rather than negotiating steep discounts, some homeowners are choosing to take their properties off the market, leaving transactions stalled as buyers and sellers struggle to agree on prices.
Regional differences, however, remain pronounced. San Francisco County, CA; Cuyahoga County, OH; and Jackson County, MO, continued to exhibit comparatively stronger market activity, while counties in Florida and Texas occupied the weakest end of the Hotness Index rankings.
*Index values are subject to revision as deemed necessary, contingent upon the receipt of new or updated data.
