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
Workforce Development
Feb 16, 2026
Florida HBA Helps ‘Fill the Gap’ for Local Trades EducationThe Treasure Coast Builders Association has helped prepare Florida’s future workforce through local Career and Technical Education programming.
Membership
Feb 16, 2026
NAHB Mourns the Passing of Past Chairman Dean MonDean Mon, 2020 NAHB chairman, passed away on Sunday, Feb. 15. Actively involved in the New Jersey building industry for more than 30 years, Mon was president of the D.R. Mon Group, Inc.
Latest Economic News
Economics
Feb 16, 2026
Cost of Credit for Builders & Developers at Its Lowest Since 2022The cost of credit for residential construction and development declined in the fourth quarter of 2025, according to NAHB’s quarterly survey on Land Acquisition, Development & Construction (AD&C) Financing.
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.