January 2026 MBS Highway Housing Index

The MBS Highway National Housing Index saw a solid rebound in January 2026, rising 7 points from December to 34. A year ago, the index stood at 36. Lower mortgage rates are beginning to support transaction activity and put modest upward pressure on prices.

National Data

In January, the MBS Highway National Housing Index increased 7 points MoM to 34, just two points below its level a year earlier. The index typically begins its seasonal upswing in January, and this year lower rates and improved affordability appear to be helping.

An index reading of 50 separates contraction (below 50) from expansion (above 50). The overall index has remained below this level since June 2024, when it last reached 53.

Buyer activity rose 8 points MoM to 35, above its year-ago level of 30. Nationwide, 46% of respondents described current buyer activity as slow, down from 57% in December, signaling improving demand. Price direction improved 6 points MoM to 32, though it remains below its January 2025 level of 42. Meanwhile, 44% of respondents reported seeing price reductions in their local markets, down from 54% in December, pointing to easing downward pressure on prices.

Regional Data

Buyer activity increased in five of seven regions, led by the Southwest (+14 to 35) and Mid-Atlantic (+12 to 50). Activity was lowest in the Northwest (27) and highest in the Mid-Atlantic.

Price direction also improved in five regions. The Mid-Atlantic saw the largest gain (+10 to 54), moving into expansion territory. The Southeast (+9 to 27) and Southwest (+8 to 23) also made notable gains, while the Northeast (-7 to 43) and West (-2 to 28) saw declines.

Question of the Month

As we step into a new year, we asked our customers: How do you expect home prices to trend in your area in 2026 compared to 2025?

• Move higher
• Stay about the same
• Move lower

Overall, 53% of respondents expect prices to stay about the same in 2026, while 35% forecast increases and 12% predict declines. This view was consistent across six of seven regions. The Mid-Atlantic was the exception, where 51% anticipate price increases, compared with 45% who see them staying steady.