September 2024 MBS Highway Housing Index

The MBS Highway National Housing Index dropped 2 points in September 2024 to 40. With the seasonal slowdown well underway, the decline in mortgage rates over the last four months has yet to noticeably boost buyer activity.

National Data

The MBS Highway National Housing Index dropped 2 points to 40 in September 2024. This was the fifth straight MoM decrease for the overall index. In September 2023, the index stood at 41.

The national Buyer Activity sub-index fell 4 points to 36 in September 2024, more than reversing the 3 point gain experienced in August 2024. This despite average mortgage rates dropping 118 basis points (1.18%) over the last 4 months. Exacerbating the normal seasonal slowdown, buyers seem to be in wait-and-see mode, with both Fed rate cuts and the US presidential election forthcoming.

The national Price Direction sub-index, meanwhile, fell 1 point to 44 in September 2024. In September 2023, the national Price Direction sub-index was at 48.

Regional Data

Buyer Activity levels fell month-over-month in six of the seven regions, with only the Southwest (34 → 35) eking out a small increase from a low level. With the Mid-Atlantic slipping (50 → 44), the Northeast (58 → 56) was the only region where Buyer Activity levels remained above the 50 breakeven point between expansion and contraction.

Four of the seven regions saw their Price Direction sub-indexes move lower, most notably the Southeast (39 → 32) and Midwest (49 → 44). The largest gain was seen in the Northeast (63 → 72), but the Southwest (35 → 39) and West (48 → 49) regions also saw increases.

“Average 30-year mortgage rates peaked in October 2023 at over 8%. Today, they’re approaching 6.25%. Affordability has already improved, and with the Fed set to begin cutting interest rates on September 18, more good news could be on the horizon for homebuyers. Just don’t wait too long to make your move. With home prices continuing to rise, the ‘cost of waiting’ is both real and significant,” said Barry Habib, MBS Highway’s Founder and CEO.

‍