November 2024 MBS Highway Housing Index

The MBS Highway National Housing Index dropped 9 points to 31 as the brief (and unseasonal) rise in buyer activity last month was crushed by the rebound in mortgage rates.

National Data

The MBS Highway National Housing Index in November 2024 fell 9 points month-over-month to 31. This compares with a 4 point drop at the same time last year (35 → 31).

In October 2024, the overall index had remained flat at 40, with the sharp fall in mortgage rates over the prior four months giving an unseasonal boost to the Buyer Activity sub-index. However, this reversed aggressively in November, with mortgage rates rebounding nearly 100 basis points, and the Buyer Activity sub-index plunging 15 points to 24. In November 2023, the national Buyer-Activity sub-index was at 20.

The national Price Direction sub-index fell 4 points to 37 in November 2024. A year ago, the national Price Direction sub-index was at 41.

Regional Data

In November 2024, Buyer Activity levels fell in all regions, with the biggest drops seen in the Northwest (46 → 18), West (48 → 27), and Northeast (59 → 41) regions. Cooler weather, coupled with much higher mortgage rates, ended the brief (and unseasonal) increase in buyer activity that we saw in many regions last month. All seven regions’ Buyer Activity indexes are now below the 50 breakeven point between expansion and contraction.

Six of the seven regions also saw their Price Direction sub-indexes move lower, though the magnitude of the drop was generally less than seen with the Buyer Activity sub-indexes. The largest declines came from the Northwest (44 → 29), Southeast (34 → 28) and Mid-Atlantic (59 → 53) regions. Only the Midwest region (where the inventory of homes for sale remains very low in many markets) managed to keep its Price Direction sub-index flat at 40. Only the Northeast and Mid-Atlantic regions kept their Price-Direction sub-index above 50.

“Last month we saw the green shoots of increased buyer activity, but the sharp upward move in mortgage rates during October mowed them down. Recent conflicting data on the strength of the job market and limited progress on inflation saw 10-year treasury yields rise to near 4.5%. Nonetheless, the Fed stayed the course, cutting short-term rates by 25 basis points on November 7,” said Barry Habib, MBS Highway’s Founder and CEO.