September 2025 MBS Highway Housing Index

After months of steady declines, the MBS Highway National Housing Index bounced back – climbing 3 points to 27. This improvement partially reflects the recent sharp dip in mortgage rates sparked by softer-than-expected labor sector data.

National Data
The MBS Highway National Housing Index rose 3 points to 27. That’s the first month-over-month increase we’ve seen since April 2025, when the index climbed 3 points to 48. In September 2024, the index stood at 40.

As a reminder, an index reading of 50 serves as the dividing line between contraction (below 50) and expansion (above 50). The overall index has not exceeded 50 since June 2024, when it last reached 53.

Buyer activity climbed 4 points to 29, but that was still down from 36 a year ago. 55% of respondents nationwide described current buyer activity as slow.

Price direction rose 1 point to 24, compared to 44 in September 2024, reflecting rising inventory levels and weaker price momentum nationwide. 58% of respondents nationwide indicated that they were seeing price reductions in their local markets.

Regional Data
In September 2025, most regions saw a rebound in buyer activity. The largest increases came from the Northeast (+11 to 47) and the Northwest (+6 to 25). The slowest regions for buyer activity remained the Southeast (+4 to 22) and Southwest (+3 to 22). The strongest region overall was the Mid-Atlantic, where buyer activity rose 5 points to 54, crossing the breakeven threshold of 50.

Price direction was more mixed, with the Northeast (+4 to 56) and Mid-Atlantic (+4 to 56) climbing further into expansion territory, while three regions saw an increased prevalence of price reductions: the Midwest, Southwest and Northwest. Again, the regions seeing the weakest price momentum were the Southwest and Southeast.

Question of the Month:

‍How have commissions changed since the NAR settlement? It’s been a year since the bombshell NAR settlement went into effect. At the time, most commentators expected commission rates to drop markedly as a result of buy and sell-side commissions being "unbundled." We asked our customers what they’ve actually experienced in their local markets:

• Commission rates stayed roughly the same
• Commission rates decreased slightly
• Commission rates decreased significantly

Overall, 65% of respondents said that commission rates hadn’t changed, with an additional 33% saying that they had decreased slightly. Given that commission rates tend to decline over time, “decreased slightly” could just mean “normal” annual decreases. In no region did more than 5% of respondents say that commission rates had decreased significantly.