June 2025 MBS Highway Housing Index

The MBS Highway National Housing Index experienced a notable decrease in June 2025, dropping by eight points to a level of 34. This decline reflects ongoing economic uncertainty that continues to hinder housing activity this spring.

National Data

In June, the MBS Highway National Housing Index dropped by another 8 points to reach 34, marking its lowest level since December. For reference, an index reading of 50 serves as the dividing line between contraction (below 50) and expansion (above 50). The overall index has not exceeded 50 since June 2024, when it last reached 53.

Both the Buyer Activity sub-index (-7 points) and the Price Direction sub-index (-8 points) saw significant decreases. The Buyer Activity sub-index is now at 34, compared to 45 at this time last year. Notably, half of respondents (50%) described current buyer activity as slow, while just 18% said it was active and 32% said it was steady.

The national Price Direction index also stands at 34, a significant drop from last year’s level of 60. A combined 56% of those surveyed reported that prices are either rising or remaining stable, while 44% observed price declines.

Regional Data

In June 2025, four out of seven regions experienced decreases in Buyer Activity levels, with the largest declines seen in the Midwest (-11 points to 46) and the Southeast (-10 points to 22). The Southeast, Southwest (-6 points to 28), and West (-9 points to 28) remain the least active regions. Meanwhile, only the Northeast (+2 points to 63) and Mid-Atlantic (steady at 53) maintained their Buyer Activity sub-indexes above the breakeven threshold of 50.

In a similar trend, all seven regions recorded drops in their Price Direction sub-indexes. However, three regions – the Northeast (-5 points to 65), Mid-Atlantic (-10 points to 56), and Midwest (-9points to 52) – still stayed in expansion territory. At this time last year, five regions had Price Direction sub-indexes above 50.

 QOTM: How have recent economic developments (such as new tariffs and GDP contraction) affected buyer sentiment in your area?

This spring, economic uncertainty has become more prevalent due to the introduction of new tariffs, a cooling labor market, declining GDP, and elevated mortgage rates. Given these factors and a slow start to the spring homebuying season, we asked survey participants how these conditions have influenced buyer sentiment:

- No impact  

- Minor drop in buyer sentiment  

- Major fall in buyer sentiment  

Survey Results

Most respondents (56%) reported a minor decline in buyer sentiment, making it the most frequently selected option. In comparison, only 24% of participants observed a major decrease in sentiment, while 21% noticed no impact at all.

This pattern was reflected consistently across all seven regions, where the perception of a minor drop in sentiment was predominant:

Northwest: 61%  

Mid-Atlantic: 59%  

Southeast: 57%  

West: 56%  

Northeast: 55%  

Southwest: 54%  

Midwest: 51%  

Conversely, the percentage of respondents identifying a major fall in buyer sentiment remained considerably lower in every region, ranging from 0% to 30%.

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