May 2026 MBS Highway Housing Index

The MBS Highway National Housing Index rose 5 points in May 2026, climbing from 42 in April to 47. Buyer activity rebounded sharply from last month’s rate-driven pullback, hitting exactly 50 — the expansion threshold — while price direction continued its slow but steady climb.

National Data

After April’s setback, the MBS Highway National Housing Index bounced back in May, gaining 5 points month over month to reach 47. The index now sits 5 points above its level from a year ago, suggesting the underlying trend remains constructive despite month-to-month volatility. As a reminder, a reading of 50 separates contraction (below 50) from expansion (above 50).

Buyer activity drove the recovery, jumping 8 points month over month to 50 — right on the expansion threshold, and 9 points above its year-ago level of 41. Nationwide, approximately 32% of respondents described buyer activity as active, a meaningful recovery from April’s 24%. The interest rate sensitivity we saw in April appears to have partially unwound.

Price direction edged up 2 points month over month to 43, just 1 point above its May 2025 level of 42. The slow, grinding improvement in price direction continues — it has now risen for the last six months — but remains well below 50 nationally, meaning price reductions still outnumber price increases across the country.

Regional Data

Buyer activity improved in six of seven regions, with the Northeast surging an extraordinary 39 points month over month to 83. The Midwest also posted a strong gain (+14 to 63), and the Mid-Atlantic continued its run of strength (+8 to 72). Despite the broad rebound, only four regions — Northeast, Mid-Atlantic, Midwest, and Northwest — are at or above the 50 threshold.

Price direction was more mixed. Four regions improved and three declined. The Northeast (+13 to 79) and Mid-Atlantic (+7 to 70) continued to lead all regions, with both at levels reflecting strong seller conditions. The Midwest (+6 to 63) and West (+5 to 46) also posted solid gains. On the other side, the Southeast (-6 to 26), Southwest (-5 to 25), and Northwest (-4 to 38) all saw price direction weaken.

Question of the Month

The sudden rise in mortgage rates in the wake of the US/Iran war has upended many buyers’ plans. We asked our survey respondents: For clients who have decided to postpone a home purchase this spring, what reason are they most often citing?

• Inflation / affordability
• Economic uncertainty
• Rising oil and gas prices tied to global conflict

Overall, 55% of respondents said that inflation/affordability concerns had led some clients to delay or shelve their purchase plans. An additional 35% said that economic uncertainty was the main culprit.