 We may see one, if not two, rate cuts in the back half of this year. He says that would be welcome news for builders. Lending rates for construction loans are also going to fall, and that's obviously the lifeblood of the industry to start new projects. A stronger market for new homes could then boost related industries, like the renovations George Arroyo does. Catherine Thompson of Thompson Research Group says when current homeowners finally decide to upgrade... Then they would sell their existing home, which drives repair and remodel.