August 2026 MBS Highway Housing Index

The MBS Highway National Housing Index fell 5 points in August 2026 to 27, with the normal seasonal downturn exacerbated by the highest mortgage rates we’ve seen in more than a year.

National Data

In August, the MBS Highway National Housing Index dropped for the third month in row, shedding 5 points to hit 27. While that index level is consistent with weakening demand and flattish prices, it’s actually 3 points above its level from a year ago. As a reminder, a reading of 50 separates contraction (below 50) from expansion (above 50).

Both our Buyer Activity and Price Direction sub-indexes lost 5–6 points to arrive at 27. While it’s normal for our index to peak around April-May, there is little doubt that the US/Iran conflict — which has boosted oil prices, inflation and (by extension) mortgage rates — has crimped demand at a time when inventory levels are generally rising. That explains why, at the national level, home prices are basically flat.

Regional Data

Buyer Activity dropped in six of seven regions, with the Mid-Atlantic (-16 to 30) and Midwest (-11 to 29) seeing the largest drops. The Southeast eked out a tiny gain (+1 to 28). Only the Northeast region (-5 to 54) remained above the 50 threshold. It it notable, however, that 5 of 7 regions have Buyer Activity levels above the same time last year.

Price direction was a similar story, with five of seven regions seeing declines. The Midwest saw the largest fall (-15 to 35), followed by the Mid-Atlantic (-14 to 46). The Southwest continues to be in a funk, with both the lowest Buyer Activity (20) and Price Direction (16) amongst the regional indexes.

Question of the Month

We like to regularly check on the local supply/demand situation. So we asked our survey respondents: Would you consider your area a buyer’s market, a seller’s market or a balanced market?

Nationwide, 48% of respondents said that they were operating in a buyer’s market, with 80% of respondents in the Southwest and 67% in Southeast saying that buyers had the most negotiating leverage. In contrast, 69% of respondents in the Northeast said that they were still in a seller’s market. With active inventory down as much as 50% (relative to pre-pandemic) in some Northeastern states, that’s no surprise.

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