Rocket Fuel Newsletter – Fresh insights on rates, remodeling, and rentals

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This week brings us new apartments galore, home remodeling surges, an interest rate hold, and the future of Section 8 housing.

Fuel up! 🚀  

The Federal Reserve keeps rates the same

On Wednesday, the Federal Open Market Committee (FOMC) decided to maintain the federal funds rate range at 4.25% to 4.50%, marking the third consecutive meeting with no change. The decision was unanimous among Fed officials. Despite this, the futures market is projecting a few rate cuts for 2025.

"Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace. The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid. Inflation remains somewhat elevated.”

Here is the FOMC’s statement from the meeting.

New apartments hit a 50-year high

Last year, 592,000 new apartments were completed. The last time the U.S. saw this many new apartments built was in 1974. This surge was largely driven by the low interest rates during the pandemic, and it’s expected to represent a peak in new apartment construction for the foreseeable future.

For the full article, click here.

Home remodeling continues to surge in 2025

Despite economic uncertainty, home remodeling for the first quarter of 2025 has continued to increase. Additionally, the Leading Indicator of Remodeling Activity (LIRA) projects an increase in remodeling well into 2026.

For the full article, click here.

Section 8 housing is in the spotlight after the White House proposed some major changes. Affordable housing remains a critical issue across the country, and Section 8 is a central pillar of how the federal government has addressed this need.

What is Section 8 housing?

Section 8 is a federal program provided by the Department of Housing and Urban Development (HUD) that offers support to low-income families, seniors, and people with disabilities to help them afford safe, private housing. This program was established back in 1974 by the Housing and Community Development Act and aims to reduce housing costs by providing rental subsidies.

The program consists of three main components:

  1. Housing Choice Vouchers (HCV): The most common form of Section 8 housing, these vouchers are issued to tenants and indicate the maximum amount of rental assistance they qualify for. Then, tenants find housing on the private market that meets the program requirements. In this instance, HUD pays a portion of the rent directly to the landlord.
  2. Project-Based Vouchers (PBV): This type of subsidy is tied directly to specific housing units. A family can live in the unit and receive the subsidy, but if they move, the subsidy will not transfer with them.
  3. Homeownership Vouchers: Allows eligible recipients to use their subsidy toward a mortgage payment instead of rent.

Program reach

In 2023, over 9 million people – or nearly 3% of the U.S. population – participated in assisted housing programs.

Who qualifies?

Eligibility is based on household income relative to the Area Median Income (AMI).

  • 94% of the households in subsidized housing are classified by HUD as “very low income,” earning less than 50% of the AMI.
  • 77% are considered “extremely low income,” earning 30% or less of the AMI.

What is the proposal?

The centerpiece of the proposal is a shift in housing assistance from the federal government to the state level. Under this plan, states would gain autonomy to design and implement their own rental assistance systems. Proponents argue this flexibility would allow states to better address local housing needs. However, critics warn it could result in uneven access to support across the country. The proposal is part of the federal budget plan for fiscal year 2026 and is expected to face significant debate in Congress before any changes are enacted.

Purchase season is here. Stay prepared by engaging with industry leaders and discovering what’s next. We’ll be at these top events – let’s connect!

  • May 14: Utah Mortgage Show – Park City, UT (Use the exclusive code RocketFree to waive the registration fee for this event.)

Join us for meaningful conversations, valuable insights, and new opportunities to drive your business forward. We look forward to seeing you there.

There were plenty of fast times last week, as nearly 15% of solvers finished in less than a minute. Our top time was an incredible 15 seconds, followed by a trio under 40 seconds.

This week’s puzzle gets 2 Rockets out of 5.

Click here to solve!

Good luck!