Fed in No Rush to Cut Rates
In a widely anticipated announcement, the Federal Reserve paused on rate cuts at the conclusion of its January meeting, holding the federal funds rate in the 4.25% to 4.5% range. The Fed will continue to reduce its balance sheet, including holdings of mortgage-backed securities.
The Fed noted the economy remains solid, while specifying a data-dependent pause. Fed Chair Jerome Powell did qualify current policy as “meaningfully restrictive,” but the central bank appears to be in no hurry to enact additional rate cuts.
Given the ongoing, outsized impact that shelter inflation is having on overall inflation, an explicit mention to housing market conditions would have been useful. However, Powell did state in his press conference that housing market activity appears to have “stabilized.”
Although improving, shelter inflation is running at an elevated 4.6% annual growth rate, well above the Consumer Price Index (CPI). These housing costs are driven by continuing cost challenges for builders such as financing costs and regulatory burdens, and other factors on the demand-side of the market like rising insurance costs.
NAHB Chief Economist Robert Dietz offers more insights from the Fed's January meeting in this Eye On Housing article.
Additionally, the latest Macro Economic Outlook from NAHB provides further details about the pace of housing inflation, as well as a recap of 2024 economic conditions, a forecast for 2025 interest rates, and more. Watch the video below or visit the Macro Economic Outlook video library on nahb.org.
Latest from NAHBNow
Workforce Development
Oct 05, 2026
HBA Support Helps Student-Built Home Program Enter 10th Year
For nearly a decade, the Lakes Region Builders and Remodelers Association has partnered with the local J. Oliva Huot Technical Center to strengthen New Hampshire's residential construction workforce and prepare students for careers in the industry.
Advocacy
Oct 02, 2026
Podcast: Will Congress Flip This November?
On the latest episode of NAHB’s podcast, Housing Developments, Chief Advocacy Officer Ken Wingert joins CEO Jim Tobin and COO Paul Lopez to discuss what to expect ahead of the 2026 midterm elections.
Latest Economic News
Economics
Oct 02, 2026
U.S. Economy Adds 29,000 Jobs in September as Prior Months Are Revised Down
The U.S. labor market cooled in September, with nonfarm payroll employment increasing by just 29,000 as downward revisions erased most of August’s previously reported strength. The unemployment rate edged up to 4.2%, as both employment and the labor force continued to grow.
Economics
Oct 01, 2026
Private Residential Construction Spending Posts Broad-Based Gains in August
Private residential construction spending rose in August 2026 following a series of declines during the second quarter of the year. According to the latest construction spending data from the U.S. Census Bureau, private residential construction spending came in at a seasonally adjusted annual rate (SAAR) of $882.3 billion in August, up 1.1% from July but down 4.8% from a year ago.
Economics
Oct 01, 2026
AI Exposure Remains Relatively Low Across Most Construction Occupations
Artificial intelligence (AI) is rapidly changing how work gets done, but its impact varies considerably across occupations. For most construction occupations, near-term exposure to AI remains relatively low.