On the latest episode of NAHB’s podcast, Housing Developments, CEO Jim Tobin and COO Paul Lopez discussed recent economic developments, including the Federal Reserve’s rate cut announcement this week and its implications for housing.
The Federal Reserve reduced the federal funds rate by 50 basis points on Wednesday. Two more Federal Open Market Committee meetings remain in 2024, where additional cuts are anticipated as the Fed aims for a target rate of 2%.
Lower rates for AD&C loans are considered crucial for the housing industry to meet demand. The reduction in rates has also spurred activity in the refinancing market and is expected to encourage prospective home buyers. This optimism is reflected in this week’s NAHB/Wells Fargo Housing Market Index, which rose by two points as builders anticipate market improvements.
“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.”
Tobin highlighted several policy areas that could enhance housing affordability: removing regulatory barriers to allow more land development, eliminating tariffs to ensure affordable building materials, and improving the construction labor market through 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 presidential elections, significant Senate races across Montana, Ohio, Pennsylvania, Nevada, Arizona, Florida, and Texas will be closely watched.
“It’s just an interesting year,” Tobin noted. “And it’s going to be close.”
Tobin and Lopez will attend the 2024 Fall Leadership Meeting from October 1-3 in San Antonio. Nearly 1,000 attendees are expected at JW Marriott San Antonio Hill Country to network and discuss key industry issues and upcoming elections. Registration is also open for the 2025 International Builders’ Show in Las Vegas.
Listeners can access the full episode below and subscribe to Housing Development through their preferred podcast provider or watch all episodes on YouTube.