Each month, the NerdWallet Homebuying Climate Index puts a single number — and a familiar weather label — on how favorable conditions are for home buyers. NerdWallet's Homebuying Climate Index combines five indicators linked to homebuying activity: mortgage rates, home price growth, disposable income, unemployment and building permits. View all sourcesLower mortgage rates make borrowing more affordable, so they're weighted heavily in our Climate Index — if mortgage rates move down, that will quickly push the Index toward Sunny. We track the month-over-month change in FHFA’s Home Price Index, with upward motion pushing the Climate Index sunnier. “July 2026 Homebuying Climate Index.”