What's happening:
The beginning of September had consumers keeping an eye on interest rates and how shifts could affect their daily lives. Now, with the Federal Reserve announcing a quarter-point rate cut, many see the potential for relief through lower payments, more room in their budgets, and reduced day-to-day stress. This decision is also shaping decisions about the home. Many homeowners already have projects lined up for the months ahead, from cosmetic updates to kitchen and bathroom remodels, and the rate cut could provide some with the confidence to move forward. Still, plans remain cautious. The picture that emerges is of a consumer who wants to invest in their home but is weighing timing carefully, balancing aspirations with a need for financial security.
What we found:
- 68% of respondents say they follow news about interest rates very closely or somewhat closely.
- Expectations for interest rates prior to the Fed’s announcement on September 17th were mixed: 27% expected them to decrease, 30% expected an increase, and 30% expected them to hold steady.
- 74% of homeowners are planning some kind of home improvement project in the next 6 months. The most common projects are painting or other cosmetic upgrades (38%), kitchen remodels/upgrades (32%), and bathroom remodels/upgrades (32%).*
- With 36% of homeowners saying they were waiting for rates to drop before moving ahead, the Fed’s cut could provide the push needed to turn planned projects into action.*
Why it matters:
Consumers are ready to spend but have been cautious about timing, especially when it comes to home projects. The Fed’s recent rate cut may give some confidence to move forward, helping to unlock demand that was waiting for the right conditions. Even so, hesitation remains as people continue to weigh affordability and stability before committing. For brands, the opportunity lies in meeting this moment with reassurance and clear signals of value, offering consumers practical reasons to act now while still feeling secure. Messaging that highlights long-term value, manageable investment, or ways to ease financial strain will resonate most with consumers who are eager to act but hesitant to overextend.
General Population:
N= 956
MOE= ± 3.17%
*Homeowners:
N= 592
MOE= ± 4.0%
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