Key Takeaways The Federal Reserve’s recent interest rate cut came as home construction remained constrained by high borrowing costs. Last week’s interest rate cut will help, but the troubled industry will likely need more than that. “Our policy rate changes do tend to affect mortgage rates,” Powell said. Mortgage rates hardly budged after the Fed cut rates in late 2024. “While mortgage rates are starting to ease, further relief is needed to meaningfully improve affordability in many regions and inspire builders,” Guatieri wrote.