October 2026 MBS Highway Housing Index

The MBS Highway National Housing Index fell to 15 in October, down from 22 in September, marking its fifth consecutive monthly decline. After reaching a seasonal high of 47 in May, the index has continued to weaken, with both buyer activity and home price direction declining sharply from the previous month.

National Data

The MBS Highway National Housing Index dropped 7 points in October to 15, its lowest level in five months of consecutive declines. The index is also 12 points below its level a year ago. Readings above 50 indicate expansion, while readings below 50 signal contraction. October’s reading shows that housing market activity remains firmly in contraction territory.

The buyer activity index fell 8 points to 13, well below its year-ago reading of 29, when mortgage rates were lower. Nationwide, 80% of respondents reported slower buyer activity, a number that has been increasing in recent months. The results suggest that elevated mortgage rates continue to weigh on buyer demand.

The price direction index also declined for the fifth consecutive month, falling 6 points to 17. With the index well below 50, price reductions continue to outpace price increases across markets nationwide.

Regional Data

Buyer activity declined in all seven regions, with the steepest drops in the West (down 15 points to 9), Northwest (down 11 points to 6), and Southeast (down 10 points to 9). The Northeast remained the strongest region, with a reading of 29, though it also stayed well below the 50-point threshold for expansion.

Price direction weakened across all seven regions as well. The Northeast recorded the largest decline, dropping 14 points to 24. The Midwest fell 13 points to 25, while the Northwest declined 10 points to 7.

Question of the Month

With mortgage rates moving higher, we asked respondents how their clients are responding to average mortgage rates above 7%. The choices were:

·      Delaying purchase plans

·      Need to move/dealing with it

·      Shelving purchase plans

Nearly two-thirds of respondents (64%) said their clients were delaying home purchases. Another 22% reported that buyers needed to move and were proceeding despite higher rates, while 14% said clients were shelving their plans entirely.

The results were similar across all regions, with the majority of respondents saying buyers were delaying purchases and a much smaller share reporting that buyers were shelving their plans altogether.