For months, the Federal Reserve has been at the center of debate, with interest rates holding back buyers, slowing refinances, and putting pressure on markets that thrive on access to affordable credit. A major shift in Washington could be setting the stage for something we have not seen in years. The Federal Reserve is moving closer to prioritizing lower borrowing costs, and that could spark a new wave of opportunity across housing and business markets.

What’s Changing at the Fed

President Trump’s recent moves with the Federal Reserve Board have drawn national attention. For everyday Americans, the implications are clear. With new appointments to the Fed’s Board of Governors and the chance to select a successor when Jerome Powell’s term ends in May, the balance of power is shifting toward a Fed that favors lower interest rates and easier access to financing.

That type of course correction would ripple through the economy, with real estate at the center.

Lower Borrowing Costs Unlock Housing

When rates decline, housing demand surges. After the financial crisis, the Federal Reserve cut rates to near zero, and U.S. home sales climbed steadily from 4.1 million in 2008 to nearly 5.5 million by 2016. A similar trend followed during the pandemic when rates fell below 3 percent. Mortgage applications spiked and home prices jumped more than 40 percent nationwide between 2020 and 2022.

Lower borrowing costs allow more families to qualify for mortgages and give sellers access to a larger pool of motivated buyers. Affordability has been the biggest challenge in recent years, but a shift to cheaper financing would immediately change momentum, giving buyers who have been waiting on the sidelines a chance to act.

Refinancing and Renovation Boom

Lower rates do not just help buyers. Homeowners can refinance into more affordable monthly payments or tap into their equity through home equity lines of credit. This opens the door to renovations and improvements that stimulate activity in related industries. In 2020 alone, U.S. homeowners pulled out more than $275 billion in home equity, much of it spent on remodeling and upgrades. That level of investment supports contractors, remodelers, landscapers, and home supply stores, keeping money flowing through local economies.

Growth for Small Businesses

Cheaper credit terms also fuel small businesses, which are the backbone of the economy. In periods of lower rates, business lending typically expands by 7 to 10 percent annually, according to Federal Reserve data. That means more entrepreneurs can hire, expand, and invest in growth. For real estate, this translates into stronger demand for both commercial space and housing as communities expand.

The Opportunity Ahead

The changes now taking shape at the Federal Reserve could mark the beginning of one of the best stretches in recent memory for real estate. Buyers gain affordability, sellers benefit from stronger demand, and communities see growth through reinvestment and expansion. History has shown that periods of lower rates have fueled real estate booms. With policy moving in that direction again, the timing could not be better.

This is not just a moment to watch. It is a moment to act.