MBS Highway Housing Index, June 2025
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.
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.
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%.
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%.
Methodology
MBS Highway’s monthly Housing Index provides an accurate and real-time read on buyer activity and home price direction both nationally and regionally in the U.S. housing market. This survey of 30,000 mortgage and real estate professionals fills a crucial industry need for insights that reflect buyers’ immediate experiences, helping mortgage loan originators to better serve homebuyers.
The MBS Highway Housing Survey is comprised of two separate component indices: buyer activity and home price direction. Each month, respondents rank buyer activity as “active,” “steady,” or “slower,” and home price direction as “price increases,” “steady,” or “price reductions.” A national and regional index is calculated for each component index by applying the formula “[active + (steady/2)]” for buyer activity, and “[price increases + (steady/2)]” for home price direction. The score for each component index is then used to calculate the MBS Highway Housing Index by applying the formula "[(national buyer activity/2) + (national home price direction/2)].
Any number over 50 indicates expansion while a number below 50 indicates contraction. The MBS Highway Housing Index can range between 0 and 100.
Dan Habib, MBS Highway’s Chief Revenue Officer, explained, “There are a few reliable housing reports available in the market, most of which are delayed by two months. Because MBS Highway has a large base of mortgage and real estate clients, we felt we were in a unique position to capture real-time housing data from our subscribers, who are on the front lines of the housing market.”
MBS Highway’s monthly Housing Index provides an accurate and real-time read on buyer activity and home price direction both nationally and regionally in the U.S. housing market. This survey of 30,000 mortgage and real estate professionals fills a crucial industry need for insights that reflect buyers’ immediate experiences, helping mortgage loan originators to better serve homebuyers.
The MBS Highway Housing Survey is comprised of two separate component indices: buyer activity and home price direction. Each month, respondents rank buyer activity as “active,” “steady,” or “slower,” and home price direction as “price increases,” “steady,” or “price reductions.” A national and regional index is calculated for each component index by applying the formula “[active + (steady/2)]” for buyer activity, and “[price increases + (steady/2)]” for home price direction. The score for each component index is then used to calculate the MBS Highway Housing Index by applying the formula "[(national buyer activity/2) + (national home price direction/2)].
Any number over 50 indicates expansion while a number below 50 indicates contraction. The MBS Highway Housing Index can range between 0 and 100.
Dan Habib, MBS Highway’s Chief Revenue Officer, explained, “There are a few reliable housing reports available in the market, most of which are delayed by two months. Because MBS Highway has a large base of mortgage and real estate clients, we felt we were in a unique position to capture real-time housing data from our subscribers, who are on the front lines of the housing market.”