Fed Rate Hike Expected in March
At the conclusion of its January policy meeting, the Federal Open Market Committee strongly signaled that it will undertake its first, post-Covid increase of the federal funds rate in March. The Fed is tightening monetary policy in response to the highest inflation readings in nearly 40 years. These inflationary pressures have increased both consumer costs and businesses input costs, including those faced by the residential construction sector.
The Jan. 26 policy announcement noted clearly: “With inflation well above 2% and a strong labor market, the Committee expects it will soon be appropriate to raise the target range for the federal funds rate.”
NAHB Chief Economist Robert Dietz provides in-depth analysis on what the Fed action will mean for housing and interest rates this year in this Eye on Housing blog post.
Latest from NAHBNow
Economics
Feb 13, 2026
Existing Home Sales in January Plunged to Lowest Level Since 2024Existing home sales in January fell to lowest level since August 2024 as tight inventory continued to push home prices higher and winter weather weighed on sales activity.
Economics
Feb 12, 2026
The Biggest Challenges Expected by Home Builders in 2026According to the latest NAHB/Wells Fargo Housing Market Index, 84% of home builders felt the most significant challenge builders faced in 2025 was high interest rates and 65% anticipate interest rates will remain a problem in 2026.
Latest Economic News
Economics
Feb 13, 2026
Inflation Eased in JanuaryInflation eased to an eight-month low in January, confirming a continued downward trend. Though most Consumer Price Index (CPI) components have resolved shutdown-related distortions from last fall, the shelter index will remain affected through April due to the imputation method used for housing costs. The shelter index is likely to show larger increases in the coming months.
Economics
Feb 12, 2026
Existing Home Sales Retreat Amid Low InventoryExisting home sales fell in January to a more than two-year low after December’s strong rebound, as tight inventory continued to push home prices higher and winter storms weighed on activity. Despite mortgage rates trending lower and wage growth outpacing price gains, limited resale supply kept many buyers on the sidelines.
Economics
Feb 12, 2026
Residential Building Worker Wages Slow in 2025 Amid Cooling Housing ActivityWage growth for residential building workers moderated notably in 2025, reflecting a broader cooling in housing activity and construction labor demand. According to the latest data from the U.S. Bureau of Labor Statistics (BLS), both nominal and real wages remained modest during the fourth quarter, signaling a shift from the rapid post-pandemic expansion to a slower-growth phase.