October 2024 MBS Highway Housing Index

The MBS Highway National Housing Index was flat in October 2024 at 40, with a modest increase in buying activity offset by weakening home price momentum.

National Data

The MBS Highway National Housing Index in October 2024 was flat month-over-month at 40, ending five straight months of declines. In October 2023, the index stood at 35. While buyer activity did increase modestly on lower mortgage rates, downward pricing pressure increased, keeping the overall index flat.

The national Buyer Activity sub-index rose 3 points to 39 in October 2024. That’s unusual for this time of year. However, considering the sharp fall in mortgage rates (-150 basis points) over the prior four months, this was a relatively subdued response. In October 2023, the national Buyer Activity sub-index was much lower (24), but recall that 30-yr mortgage rates were approaching 8% at that time.

The national Price Direction sub-index dropped 3 points to 41 in October 2024. While it’s normal for this index to seasonally decline in the fall/winter, a year ago the national Price Direction sub-index was at 46.

Regional Data

Buyer Activity levels rose month-over-month in four of the seven regions, with the biggest improvement coming from the Northwest (36 → 46) and West (39 → 48) regions. These two regions have been rebounding strongly after being hit hard in the second half of 2023. The Northeast region (56 → 59) maintained its Buyer Activity index above the 50 breakeven point between expansion and contraction.

Counterbalancing the above, four of the seven regions saw their Price Direction sub-indexes move lower. By far the largest drop came from the Northeast region (72 → 57), but the West (49 → 45) and Southwest (39 → 35) regions also saw significant declines. In contrast, the Northwest (38 → 44) and Southeast (32 → 34) saw improvements, albeit from low levels.

“The Fed cut short-term interest rates by 50 basis points on September 18, initiating a new loosening cycle after more than a year with the Fed Funds Rate range set at 525–550 bps. And after a lag, homebuyer demand finally responded to lower mortgage rates. However, this was offset by a seasonal decline in price momentum,” said Barry Habib, MBS Highway’s Founder and CEO.

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