How the Fed’s Rate Cuts Will Impact Housing in 2026
Market uncertainty looms across much of the economy. And yet, parts of the housing industry are gaining momentum, especially as the Federal Reserve cuts rates.
Next year is likely to present the home building sector with new challenges and opportunities, many of which will be explored in an upcoming 㴫ý webinar, “Housing Market Outlook: The Fed Resumes Rate Cuts.”
On Dec. 11 at 1 p.m. ET, 㴫ý’s own Danushka Nanayakkara-Skillington, assistant vice president of forecasting & analysis, will guide attendees through an in-depth look at what the rate cuts could mean for new home construction, remodeling, and the broader housing landscape in the year ahead.
Nanayakkara-Skillington will be joined by Rich Binsacca, head of content for Pro Builder and Custom Builder. The event promises to be both insightful and interactive, as both speakers will address attendees’ questions live during a Q&A session.
Discussing a Delicate Balancing Act
According to 㴫ý’s latest index of builder sentiment, confidence is gradually on the rise and at its highest level since last April. Sales conditions and buyer traffic are also improving, according to builders.
Still, rising momentum comes with caveats: A record-high portion of builders (41%) reported cutting prices in November, with average reductions hitting 6%. Meanwhile, 65% are offering sales incentives beyond price cuts.
These market dynamics underscore a delicate balancing act: home builders are betting on housing demand growth, but remain cautious about affordability and inventory risks.
During the Dec. 11 webinar, Nanayakkara-Skillington and Binsacca will unpack how these trends tie into the broader macroeconomic story — particularly as the Fed’s easing reshapes borrowing costs and buyer behavior.
Whether you’re involved in home building, developing, remodeling, investing, or public policy, you’ll walk away with a clearer view of how to position yourself for what’s to come in 2026.