Podcast: What Fed Rate Cut Means for Housing
On the latest episode of NAHB’s podcast, Housing Developments, CEO Jim Tobin and COO Paul Lopez discuss the latest economic news, including the Federal Reserve’s rate cut announcement this week, what it means for housing and what policymakers can do to promote growth in housing.
The Fed cut the federal funds rates by 50 basis points on Wednesday. Two more Federal Open Market Committee meetings remain in 2024, where additional cuts are expected as the Fed works toward its target rate of 2%.
Lower rates for AD&C loans are a critical next step in order for the housing industry to be able to meet demand. A drop in rates has also caused the refinancing market to heat up, and should help push prospective home buyers off the fence.
All of these are good signs for housing, as expressed in this week’s NAHB/Wells Fargo Housing Market Index, which rose two points this week, as builders look toward improvements in the market.
“The macroeconomy is starting to right itself,” Tobin observed. “So now is the time for lawmakers — whether at the federal level or state or local level — to jump on the housing bandwagon and get ready for that growth.”
Issues that policymakers should be looking toward to improve housing affordability include:
- Removing regulatory barriers to allow for more land development,
- Removing tariffs to make sure we’re bringing in affordable building materials, and
- Improving the construction labor market with immigration reform and workforce training.
“Everybody should be looking to enhance and protect the growth potential in housing over these next several months in order to prepare us for the next couple of years,” Tobin added.
In addition to the presidential elections, races to watch across the U.S. include the Senate races in Montana, Ohio, Pennsylvania, Nevada, Arizona, Florida and Texas.
“It’s just an interesting year,” Tobin noted. “And it’s going to be close.”
Tobin and Lopez will be heading to San Antonio Oct. 1-3 for the 2024 Fall Leadership Meeting, with nearly 1,000 attendees descending on the JW Marriott San Antonio Hill Country to network and discuss important issues in the industry and the election. Registration is also open for the 2025 International Builders’ Show in Las Vegas.
Listen to the full episode below, and subscribe to Housing Development through your favorite podcast provider or watch all the episodes on YouTube.
Latest from NAHBNow
Economics
Apr 29, 2026
Home Building Shows Signs of Stabilization with Monthly Gain in StartsOverall housing starts increased 10.8% in March to a seasonally adjusted annual rate of 1.5 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
Housing Affordability
Apr 28, 2026
NAHB Applauds HUD and USDA Action to Roll Back Costly Energy MandateNAHB Chairman Bill Owens issued the following statement after the Department of Housing and Urban Development (HUD) and the Department of Agriculture (USDA) announcement today to rescind the rule that would impose the 2021 International Energy Conservation Code (IECC) and ASHRAE 90.1-2019 as the minimum energy-efficiency standards for certain single-family and multifamily housing programs.
Latest Economic News
Economics
Apr 28, 2026
Homeownership Rate Edges Down to 65.3%The latest homeownership rate declined to 65.3% in the first quarter of 2026, according to the Census’s Housing Vacancy Survey (HVS). While this was a modest quarterly decrease, the broader picture continues to reflect significant affordability challenges.
Economics
Apr 23, 2026
The Silver Tsunami Isn’t Landing Where It’s Needed MostThe “silver tsunami” refers to the wave of housing inventory expected as older homeowners downsize or transition out of their homes. According to the latest American Community Survey, there are an estimated 61.2 million people in the U.S. aged 65 years or older, representing about 18% of the population.
Economics
Apr 22, 2026
State-Level Employment Situation: February 2026February’s labor market data point to a notable pullback in employment, with job losses concentrated across a majority of states and only modest gains elsewhere. While January showed solid momentum, February’s decline reflects emerging softness in hiring conditions, alongside uneven performance across the country.