September 2026 MBS Highway Housing Index

The MBS Highway National Housing Index continued its downward trend in September, falling from 27 in August to 22. The index has now declined for four consecutive months after reaching a seasonal high of 47 in May. Both buyer activity and home price direction weakened from the previous month.

National Data

The MBS Highway National Housing Index fell 5 points in September to 22, its fourth consecutive monthly decline. The index is also 5 points below its level a year ago. For context, readings above 50 indicate expansion, while readings below 50 signal contraction. The latest reading shows that housing market activity remains firmly in contraction territory.

Buyer activity fell 6 points from August to 21 and was well below its reading of 29 a year ago, when mortgage rates were lower. Just 9% of respondents nationwide described buyer activity as active, continuing a steady decline in recent months. The trend suggests that buyers remain highly sensitive to changes in mortgage rates.

The price direction index also declined for the fourth consecutive month, falling 4 points to 23. With the index well below 50, price reductions continue to outpace price increases in markets across the country.

Regional Data

Buyer activity declined in all seven regions, with the largest drops in the Northeast and Southeast. The Northeast fell 22 points to 32, while the Southeast dropped 9 points to 19. With the Northeast now below 50, no region remained in expansion territory.

Price direction weakened in six of the seven regions. The Northeast saw the largest decline, falling 20 points from 58 to 38. The Northwest dropped 7 points to 17, while the Mid-Atlantic fell 7 points to 39. The Midwest was the only region to improve, rising 3 points to 38.

Question of the Month

With mortgage rates moving higher and affordability challenges persisting, we asked respondents: How common are seller concessions (rate buydowns, closing cost assistance, repair credits) in your market today?

·      Rare

·      Somewhat common

·      Very common

Nearly half of respondents (46%) said seller concessions were very common in their markets, while another 42% said they were somewhat common. Just 12% said concessions were rare.

There were some notable regional differences. In the Midwest (18%), West (11%), Southeast (4%), Southwest (2%), and Northwest (0%), only a small share of respondents said seller concessions were rare, broadly in line with the national trend.

The Mid-Atlantic and Northeast stood out as exceptions. In those regions, 36% of respondents in the Mid-Atlantic and 71% in the Northeast said seller concessions were rare.