April 2025 MBS Highway Housing Index

The MBS Highway National Housing Index rose three points to 48 in April 2025. While this marks the fifth-straight month of increases, buyer activity remains slightly cooler, and price direction significantly cooler, than at the same time last year.

National Data

The MBS Highway National Housing Index in April 2025 rose 3 points month-over-month to 48. This compares with a 3 point gain at the same time last year (56 → 59). This is the first time in three years that the overall index has still been below 50 in April. As a reminder, an index level of 50 represents the breakeven point between contraction (<50) and expansion (>50).

The Buyer Activity sub-index rose for the fifth-straight month, climbing 4 points to 49. A year ago, this figure was 53. Last year, we saw a 33-point increase between November and April. This year, we’ve seen a more modest 25-point increase. In general, it’s been a more subdued seasonal upswing than usual.

The national Price Direction sub-index rose 2 points to 46. A year ago, this figure was significantly higher, at 66. This gap is consistent with slowing, but still positive price growth nationwide.

Regional Data

In April 2025, Buyer Activity levels rose in five out of seven regions, with the largest increases seen in the Mid-Atlantic (+10 to 59) and Northeast (+7 to 69), which were also the most active regions overall. The Southeast (-3 to 35) and Southwest (+4 to 44) remained the least active regions.

Looking at the regional Price Direction sub-indexes, only three are in expansion territory: Northeast (+12 to 76), Midwest (+10 to 64) and Mid-Atlantic (+3 to 63). The West (-5 to 47) slipped back below the breakeven level. Last year at this time, all seven regions had Price Direction sub-indexes >50.

Question of the Month: Is Insurance an Issue?

With a greater number of severe weather events (storm/fire/flood/freeze), increased migration to and new home construction in higher-risk areas, and much higher home prices/replacement costs, the insurance industry has suffered an increasing number of billion dollar losses. Not surprisingly, this has led to massive increases in home insurance premiums (where permitted) and the exits of some major insurers from certain states (where regulations limit or cap increases). That’s why in April, we asked our survey respondents:

For buyers in your area, do you consider the availability and price of home insurance to be:

1. Not an issue
2. A minor issue (additional affordability concern)
3. A major issue (can dissuade buyers or kill deals)

Results
63% of respondents in the West region considered home insurance to be a major issue, and another 30% said it was a minor issue. With the catastrophic LA fires still fresh in people’s minds, and several insurers refusing to renew existing or issue new policies, California is the epicenter of American home insurance concerns.

42% of respondents in the Southeast region (which includes Florida and the Carolinas) said obtaining reasonably-priced home insurance was a major issue, with another 41% considering it a minor issue for homebuyers.

63% of respondents in the Southwest region (which includes Texas) saw home insurance as a minor issue, while only 24% considered it a major issue for homebuyers.

Which region was least worried about home insurance availability and price? The Mid-Atlantic. But even there, the combination of major + minor issue was still 69%.