Why High Mortgage Rates Continue to Slow the U.S. Housing Market
The U.S. Housing Market Hotness Index declined for the fourth consecutive week, slipping to 97.40 for the week ending July 19, 2026, down from 97.78 the previous week. The latest reading suggests the U.S. housing market continues to lose momentum as high mortgage rates, persistent housing affordability challenges, and ongoing economic uncertainty keep many buyers on the sidelines. Consumer confidence also remains subdued as inflation continues to erode purchasing power, limiting demand across many markets.
While the national housing market remains soft, conditions continue to vary widely at the local level. Counties demonstrating stronger buyer demand and greater resilience include San Francisco County, California; Jackson County, Missouri; Plymouth County, Massachusetts; Montgomery County, Pennsylvania; and Cuyahoga County, Ohio. In contrast, Miami-Dade and Palm Beach Counties, Florida; Bexar and Travis Counties, Texas; and Davidson County, Tennessee continue to experience weaker housing demand, highlighting how today’s housing market is increasingly driven by local economic conditions rather than national trends.
*Index values are subject to revision as deemed necessary, contingent upon the receipt of new or updated data.
