Is the Housing Market Slowing? June’s Index Reveals the Truth
Homebuyer momentum is easing up, but the market hasn’t hit the brakes completely. According to the June MBS Highway Housing Index, the overall score dropped 8 points to 34, which is the lowest reading since December. With economic headwinds and higher mortgage rates still, in the mix, buyers are taking their time, but the market still shows signs of resilience in key areas.
What’s Driving the Slowdown?
Buyer Activity Index fell to 34, down from 45 a year ago.
Price Direction Index also hit 34, down from 60 last June.
Half of the survey respondents described buyer activity as slow. Only 18% called it active.
Despite the cooling, 56% still see home prices rising or holding steady, while 44% are seeing price declines.
Regional Breakdown
Four out of seven regions saw buyer activity fall, with the sharpest drops in:
Midwest (down 11 points to 46)
Southeast (down 10 points to 22)
West (down 9 points to 28)
Southwest (down 6 points to 28)
Meanwhile, Northeast (up 2 to 63) and Mid-Atlantic (steady at 53) continue to show activity above the expansion threshold of 50.
What’s Impacting Buyer Sentiment?
Recent economic shifts, including new tariffs, lower GDP, and labor uncertainty, are dragging down consumer confidence. When asked how these changes affected the buyer’s mindset:
56% noticed a minor dip in sentiment
24% saw a major decline
21% said there’s been no impact
This pattern held across all regions, showing consistent caution but not panic.
So… What Now?
While the data shows the market slowing, it’s not stopping. Sellers may need to price more strategically. Buyers might find less competition. And for long-term homeowners, appreciation is still expected in many areas.
Ready to Map Out Your Next Move?
You don’t have to figure this out alone. Whether you’re buying soon or just exploring your options, we’re here to guide you with clarity and care.
