How Interest Rates Impact the Housing Market

Interest rates are one of the biggest factors influencing the U.S. housing market. Whether you're planning to buy your first home, sell your current house, build a new home, or invest in property, understanding how interest rates impact the housing market can help you make smarter financial decisions.

Changes in mortgage interest rates impact the housing market with higher monthly payments, home affordability, buyer demand, home prices, and even the pace of new home construction. While no one can predict exactly where rates will go next, understanding their effects can help you better navigate changing market conditions.

What Are Mortgage Interest Rates?

A mortgage interest rate is the cost of borrowing money to purchase a home. Your interest rate determines how much you'll pay in addition to repaying the loan principal over the life of your mortgage. Mortgage interest rates are influenced by several economic factors, including:

Inflation

Economic growth

Employment levels

Investor demand for mortgage-backed securities

Federal Reserve monetary policy

Although the Federal Reserve does not directly set mortgage rates, its actions often influence the direction they move.

How Rising Interest Rates Affect Home Buyers

When mortgage interest rates increase, borrowing becomes more expensive. For buyers, this means:

Higher monthly mortgage payments

Reduced purchasing power

Smaller loan approvals

Increased difficulty qualifying for financing

For example, a one-percent increase in mortgage rates can raise monthly payments by several hundred dollars on a typical home loan. That difference may require buyers to lower their budget or delay purchasing until market conditions improve. As affordability decreases, fewer buyers enter the market, reducing overall demand.

How Interest Rates Affect Home Prices

Buyer demand is one of the primary drivers of home prices. When interest rates rise:

Buyer activity often slows.

Homes may stay on the market longer.

Sellers may offer price reductions or incentives.

Home price appreciation typically slows.

Markets with limited inventory may continue seeing stable prices, while markets with abundant housing supply often experience more noticeable price adjustments.

How Higher Rates Affect Home Sellers

Higher mortgage rates don't only impact buyers—they also influence sellers. Many homeowners currently have mortgages with significantly lower interest rates than today's market rates. Selling their home could mean purchasing another property with a much higher monthly payment. Because of this, many homeowners choose to remain in place, creating what's commonly called the "lock-in effect." This reduces housing inventory and limits the number of homes available for sale.

Lower Interest Rates Stimulate Housing Demand

When mortgage interest rates decline, affordability improves. Lower rates generally result in:

More qualified buyers

Increased home sales

Faster-selling homes

More competitive bidding

Rising home values

Lower borrowing costs often create stronger housing markets because more families can comfortably afford homeownership.

Interest Rates and New Home Construction

Builders closely monitor interest rates because they directly affect buyer demand. Higher interest rates often lead to:

Fewer housing starts

Delayed construction projects

Reduced developer investment

Slower demand for building materials

Conversely, lower rates encourage builders to construct more homes as demand increases.

Why Remodeling Often Increases When Rates Rise

Interestingly, higher interest rates can increase demand for home improvement projects. Rather than purchasing another home at today's higher mortgage rates, many homeowners decide to improve their existing property instead. Popular renovation projects include:

Bathroom remodeling

Kitchen renovations

Basement finishing

Room additions

Outdoor living spaces

Energy-efficient upgrades

Improved home ventilation systems

This "improve instead of move" trend often benefits contractors, remodelers, and home improvement companies.

Tips for Buyers During High Interest Rates

If you're purchasing a home while rates are elevated, consider these strategies:

Improve your credit score before applying.

Save for a larger down payment.

Compare offers from multiple lenders.

Consider shorter loan terms if affordable.

Refinance later if interest rates decline.

Buying when competition is lower may also allow you to negotiate a better purchase price.

Tips for Sellers During High Interest Rates

Home sellers can remain competitive by:

Pricing homes realistically

Completing needed repairs before listing

Offering closing cost assistance when appropriate

Highlighting energy-efficient upgrades

Presenting the home in excellent condition

Well-maintained homes continue to attract motivated buyers, even during slower markets.

Final Thoughts

Understanding how interest rates impact the housing market is essential for anyone buying, selling, building, or renovating a home. While rising rates can reduce affordability and slow housing activity, they also create opportunities for buyers to negotiate better deals and for homeowners to invest in improving their current homes. Whether mortgage rates are rising or falling, making informed financial decisions based on your long-term goals—not short-term market fluctuations—is often the best strategy. By staying informed about housing market trends and mortgage interest rates, you'll be better prepared to make confident real estate decisions in any economic environment.

Resources

Visit the FreddieMac site to view the current mortgage rates - click here.

Building new or thinking about remodeling? Make sure to include an Air King energy-efficient exhaust fan in your plans. Visit the Exhaust Fans section at airkinglimited.com to see how Air King can increase your indoor air quality with Quiet, Efficient, and Effective ventilation products.

Benefits of Using Fans to Stay Comfortable in Summer Heat

As the summer heat arrives, the question of how to stay cool without sending the electric bill through the roof arises. Whether you’re trying to keep a restaurant, small business, warehouse or your work environment cool or you are in your home, using fans to stay comfortable is a simple and effective way to beat the summer heat. Fans have become an essential summer accessory for people of all ages.

Instant Cooling Wherever You Are

One of the biggest advantages of using fans to stay comfortable is that it provides immediate airflow wherever you are. Unlike air conditioning units that are fixed in one location, portable fans can be moved from one place to another, with many having carry handles built into the design. Being able to direct the airflow of the fan to a specific area can be the difference between comfort and misery.

Energy-Efficient Comfort

Running an air conditioner all day can significantly increase your energy bills. Portable fans use only a fraction of the electricity, making them an affordable way to stay cool. They can also complement your air conditioning by circulating cool air more effectively, allowing you to raise the thermostat without sacrificing comfort.

Versatile for Every Situation

Portable fans come in a variety of styles and features to suit different needs. The most popular feature people look for is oscillation. This is where the fan head rotates back and forth allowing the fan to cool a larger space. Almost all oscillating fans can be locked into one position for times when you want the fan just blowing on you and then can be unlocked when you want to share the cooling effects with others. Other features to consider are a tilting fan head to direct the airflow, a remote control and other programmable features like a timer, thermostat and more.

Sizes for All Needs

The size of a portable fan is usually listed as the blade size. For instance, a 12” fan will have a blade that is 12” but the overall size of the fan will be larger. Popular sizes for portable fans range from 6” for personal comfort all the way up to 30” to cool industrial spaces like warehouses, gyms and so forth. Choosing the size you need is determined by the size of the area, how many people you want to cool and what application it is being used in (residential, commercial, industrial). The good news is there are plenty to choose from.

Affordable and Practical

Portable fans are available at a wide range of price points, making them an accessible cooling solution for nearly any budget. Their durability and versatility provide excellent value, especially during the hottest months of the year.

Final Thoughts

Using a fan to stay comfortable is a small investment that can make a big difference during the summer months. Whether you’re looking to stay comfortable at work or home or reduce your reliance on air conditioning, a portable fan offers a practical and reliable way to keep cool all season long.

This summer, don’t let the heat slow you down. With a portable fan by your side, you can stay more comfortable, and ready for whatever the day brings. Lasko Brand including Air King, B-Air and BlueDri offer an extensive line of residential, commercial and industrial grade fans. Visit airkinglimited.com to learn more about using fans to stay comfortable.

Understanding the International Energy Conservation Code (IECC)

What Is the International Energy Conservation Code?

As energy costs continue to rise and sustainability becomes a greater priority for homeowners, builders, and businesses, building energy codes play a critical role in reducing energy consumption. One of the most influential standards in the United States is the International Energy Conservation Code (IECC).

Whether you're constructing a new building, renovating an existing property, or selecting products such as insulation, windows, HVAC systems, or ventilation equipment, understanding the IECC can help ensure compliance while improving energy efficiency.

The International Energy Conservation Code (IECC) is a model building code developed by the International Code Council (ICC). It establishes minimum requirements for energy-efficient building design and construction for both residential and commercial buildings.

The code is designed to reduce energy consumption while maintaining occupant comfort and safety. It addresses a wide range of building components and systems, including:

• Building envelope performance
• Insulation requirements
• Air sealing and infiltration control
• Heating, ventilation, and air conditioning (HVAC) systems
• Lighting efficiency
• Water heating systems
• Mechanical ventilation
• Energy monitoring and controls

The IECC is updated every three years to incorporate advances in building science, technology, and energy efficiency practices.

Why the International Energy Conservation Code Matters

Buildings account for a significant portion of energy consumption in the United States. By establishing minimum efficiency standards, the IECC helps:

• Reduce Energy Costs: Energy-efficient buildings require less heating, cooling, and lighting, resulting in lower utility bills for homeowners and businesses.
• Improve Indoor Comfort: Proper insulation, air sealing, and ventilation create more consistent indoor temperatures and improve overall occupant comfort.
• Support Environmental Goals: Reducing energy consumption decreases greenhouse gas emissions associated with power generation and fossil fuel use.
• Increase Building Value: Energy-efficient buildings are increasingly attractive to buyers and tenants who prioritize lower operating costs and sustainability.

Residential International Energy Conservation Code Requirements

For residential construction, the IECC establishes requirements that improve the efficiency of homes and multifamily buildings. Key areas include:

• Insulation Standards: Minimum insulation levels are specified for walls, roofs, floors, and foundations based on the building's climate zone.
• Air Leakage Control: Builders must minimize air leaks through proper sealing around windows, doors, penetrations, and other openings.
• High-Performance Windows and Doors: The code establishes performance requirements for windows and doors to reduce heat transfer.
• Efficient HVAC Systems: Heating and cooling equipment must meet minimum efficiency standards and be properly sized for the building.
• Mechanical Ventilation: Modern airtight homes require controlled ventilation systems to maintain indoor air quality while minimizing energy loss.

The Importance of Ventilation in International Energy Conservation Code Compliance

Ventilation plays a crucial role in energy-efficient building design. While adequate ventilation is necessary for indoor air quality, poorly designed systems can contribute to energy waste. The IECC encourages the use of:

• Energy-efficient exhaust fans
• Demand-controlled ventilation systems
• Variable-speed motors
• Fan control sensors

These technologies help maintain healthy indoor environments while minimizing energy consumption.

Climate Zones and Code Requirements

One of the unique aspects of the IECC is its use of climate zones. The United States is divided into several climate regions, each with specific energy requirements based on local weather conditions.

For example:

• Colder northern climates generally require higher insulation levels.
• Hot southern climates often focus on reducing cooling loads and solar heat gain.
• Mixed climates balance both heating and cooling efficiency measures.

This climate-specific approach ensures that energy conservation strategies are appropriate for local conditions.

How the International Energy Conservation Code Is Adopted

The IECC itself is a model code. States and local jurisdictions decide whether to adopt it and may modify certain provisions before implementation. As a result, energy code requirements can vary significantly from one location to another. Builders, contractors, and property owners should always verify which version of the code is currently enforced in their jurisdiction.

Preparing for Future Energy Standards

Each new edition of the IECC generally increases energy efficiency requirements. Trends include:

• Improved building envelope performance
• Greater electrification of building systems
• Enhanced ventilation requirements
• Smart building controls
• Renewable energy readiness
• Higher performance HVAC equipment

These advancements support broader goals for reducing energy consumption and moving toward net-zero energy buildings.

Final Thoughts

The International Energy Conservation Code serves as a foundation for energy-efficient building design across the United States. By establishing minimum standards for insulation, HVAC systems, lighting, ventilation, and overall building performance, the IECC helps reduce energy costs, improve occupant comfort, and support environmental sustainability. For builders, contractors, architects, and property owners, understanding and complying with the IECC is essential for creating buildings that meet today's performance expectations while preparing for the energy demands of the future. To learn more about Air King exhaust fan solutions for kitchens, bathrooms, laundry rooms, and other living spaces, visit airkinglimited.com.

The exhaust fan market in the United States is experiencing steady and sustained growth. While often overlooked as a simple mechanical component, exhaust fans have become increasingly critical in building design, energy efficiency strategies, and indoor air quality (IAQ) management. Exhaust fans along with the wider HVAC industry is growing at approximately 6.9% per year and reflect a shift in how buildings are designed as well as code enforcement across the country*. So yes, the exhaust fan market is growing. A few key factors are driving this growth:

1. Increased Focus on Indoor Air Quality (IAQ)

One of the most significant drivers is the growing awareness of indoor air quality. Homeowners are prioritizing healthier indoor environments, particularly after heightened attention on airborne contaminants and ventilation. Homes now require better air exchange systems to remove moisture, pollutants, and odors, functions that exhaust fans directly support. This is especially critical in residential kitchens, bathrooms, laundry rooms, and main living spaces. Improved IAQ is no longer a luxury, it’s becoming a standard expectation.

2. Stricter Building Codes and Regulations

Government regulations are playing a major role in market expansion. Energy efficiency standards and ventilation requirements such as those developed by ASHRAE and the U.S. Department of Energy are pushing building owners to upgrade or install compliant systems.

These regulations often:

   • Mandate minimum ventilation rates

   • Require energy-efficient fan technologies

   • Drive retrofits of older buildings

As a result, many upgrades are no longer optional, they’re required for compliance, creating a consistent demand base. While these codes are not necessarily new, the increased enforcement of them has pushed the exhaust fan market forward.

3. Growth in Construction and Renovation Activity

Both new construction and renovations in residential housing are major growth engines. As homeowners are upgrading (new and existing construction), the ventilation system is now a focus, and as was stated above, part of code compliance. The need for residential homes continues to increase in the United States, so the need for proper ventilation through exhaust fans is also increasing.

4. Energy Efficiency and Sustainability Trends

Energy efficiency is now central to building design. Homeowners are now more educated on ventilation systems and indoor air quality, and are asking for better products. These include increased energy efficiency, lower sound, and automated functions such as humidity-sensing fans that turn the fan on and off depending on the humidity level of the space. These innovations help meet sustainability goals while lowering operating costs and increasing convenience, making upgrades financially attractive.

5. Retrofitting Aging Infrastructure

A large portion of U.S. buildings were constructed decades ago and are now being upgraded to meet modern standards, and are now required to conform to current codes. As more and more homes are being renovated, exhaust fans are either being added or upgraded to better, more efficient models. It is unheard of for a contractor to reuse an exhaust fan when doing any type of renovation. That results in an increased need for exhaust fans.

U.S. Exhaust Fan Market Conclusion

The exhaust fan market in the U.S. does not show any signs of slowing down, supported by both regulatory and consumer-driven requirements. Consumer education and code compliance are creating new growth opportunities. The U.S. exhaust fan market is no longer just about basic ventilation; it is evolving into a critical component of building performance. Driven by indoor air quality concerns, regulatory requirements, energy efficiency goals, and technological advancements, the market is positioned for sustained growth over the next decade.

To learn more about Air King exhaust fan solutions for kitchens, bathrooms, laundry rooms, and other living spaces, visit airkinglimited.com.

*source: https://www.grandviewresearch.com/industry-analysis/us-hvac-systems-market

What is a continuously operating exhaust fan?

A continuously operating exhaust fan is designed to run nonstop at a low speed, constantly removing stale, humid, or polluted air from your home. Unlike traditional exhaust fans that are switched on only when needed (like during a shower), these systems provide ongoing ventilation. Many models include a boost speed that provides additional ventilation when needed. These are referred to as dual speed models with a low speed that runs continuously, then a high speed that provides extra ventilation when the room is occupied.

Why Continuous Operating Exhaust Fans Matter

Today’s homes are built tighter than ever for energy efficiency. While that’s great for reducing heating and cooling costs, it also means that fresh air isn’t entering the home as easily—and indoor contaminants can get trapped. Continuously operating exhaust fans help solve this problem by:

• Removing excess moisture that can lead to mold and mildew
• Reducing odors from bathrooms, kitchens, and pets
• Improving overall indoor air quality
• Helping control allergens and airborne particles

Key Benefits

1. Moisture Control
Bathrooms and laundry areas produce a significant amount of humidity. Without proper ventilation, that moisture can seep into walls, ceilings, and insulation—leading to costly damage over time. A continuous operating exhaust fan ensures that moisture is consistently removed, even after you leave the room.

2. Healthier Air
Indoor air can contain dust, VOCs (volatile organic compounds), and other pollutants. Continuous ventilation helps dilute and remove these contaminants, creating a healthier living environment.

3. Odor Reduction
Because air is constantly being exchanged, odors don’t linger as long. This is especially beneficial in homes with pets, small children, or high occupancy.

4. Energy Efficiency
Continuously operating exhaust fans are required by code to be energy efficient and quiet. Almost all fans used in these applications will be ENERGY STAR® certified and most will use less energy on low speed than a light bulb. The benefits of significantly increased indoor air quality far outweigh the small amount of energy used.

5. Code Compliance
Building codes and standards—such as those influenced by organizations like ASHRAE—increasingly emphasize the importance of continuous ventilation in residential construction. Installing a continuously operating exhaust fan can help ensure your home meets these evolving requirements.

Where Should You Use Them?

Continuously operating exhaust fans are most commonly installed in:

• Bathrooms
• Laundry rooms
• Hallways (for whole-house exhaust strategies)

In some homes, a single centrally located fan can serve multiple areas.

Is a Continuously Operating Exhaust Fan Right for Your Home?

If your home feels stuffy, has persistent humidity issues, or lacks proper ventilation, a continuously operating exhaust fan could be a smart investment. They are especially beneficial in:

• Newer, tightly sealed homes
• Homes in humid climates
• Households concerned with air quality and health

Final Thoughts

Continuously operating exhaust fans offer a simple yet powerful way to improve indoor air quality, protect your home from moisture damage, and create a more comfortable living environment. As homes continue to evolve, ventilation is no longer optional—it’s essential. And continuous exhaust is quickly becoming one of the most effective ways to achieve it. For more information about Air King continuously operating exhaust fans, visit the ENERGY STAR certified exhaust fan section on the main Air King website.

Dual-speed and multi-speed exhaust fans may sound like terms that can be used interchangeably, but there are distinct differences between the two. Let’s take a look at each.

Dual Speed Exhaust Fan

A dual-speed exhaust fan will have two speeds – a low speed and a high speed, which may be referred to as a boost speed. A dual-speed fan will operate continuously on the low speed, so it will always be running. In times when more ventilation is needed, it will boost to high speed. This can be accomplished via a wall switch, a motion sensor, or a humidity sensor.

Why does it need to operate continuously?

Building codes (known as ASHRAE 62.2) in the United States call for a continuously operating exhaust fan to ensure proper ventilation of the home, increasing the indoor air quality. A convenient way to solve this code is to have a dual-speed exhaust fan. This allows the builder to only have to install one fan that solves for both the bathroom ventilation and the continuous ventilation.

How It Works

A dual is typically installed in a main bathroom and has a very low sound level. In most cases, you might not even hear it running. This is important for a continuously running fan since it will be running all the time. When the bathroom is being used, the fan will switch to high speed. This might be triggered by a wall switch, a motion or humidity sensor/switch in the fan, or mounted on the wall. Once the room is unoccupied, the fan will return to the low speed.

Multi-Speed Exhaust Fans

Multi-speed exhaust fans are different from dual-speed exhaust fans in that they only have one operational speed that is selected from two or more options. On a multi-speed fan, there is a speed selector integrated into the fan where the end user chooses which speed is desired or is needed for the space. The speed can sometimes be set at a specific number, or it could be a variable speed dial that you increase or decrease.

Why Would You Use It?

Multi-speed fans are primarily used in new construction, where the ventilation amount might need to be adjusted on-site. When you see a CFM rating, this is a test lab certification. The testing labs do a great job of testing as close as they can to the real world, but it can sometimes be different. The ducting might be a little different; there is an extra bend, a different wall cap is being used, and so forth (see our blog on static pressure). A room might require 80 CFM of ventilation. If an 80 CFM exhaust fan was installed, but is only delivering 70 CFM, there is a problem, and more than likely the installer will need to remove the fan and replace it with a larger one. If you have a multi-speed exhaust fan, all the installer has to do is adjust the speed to the higher CFM, and all is well.

The main difference between a dual-speed fan and a multi-speed fan is the number of active speeds operating. A dual-speed fan will have two, while a multi-speed fan will have one. Both provide excellent ventilation and increase the indoor air quality of your home. To learn more about Air King’s dual speed and multi speed options, including the newly introduced SF5810 three-speed slim-mount exhaust fan, visit airkinglimited.com.

A bathroom remodel is a great way to add value to your home but there are some steps that you will want to take to make sure everything goes smoothly. The first question you need to ask when doing a bathroom remodel is if you are going to take this on yourself (DIY), or are you going to hire a professional? In this post we are going to concentrate on hiring a professional and three main categories involved in the renovation process.

The Contractor

It goes without saying but the most critical part about your bathroom remodel is hiring the right contractor to complete the work. The big questions are how do you know who to hire and who to trust. There are a few simple questions you can ask. Are they licensed to work in your state?

You want to ask for a copy and if possible, verify the license number. If you live on a state line, don’t just assume that the contractor is licensed in both states.

Do they have insurance?

This should be a very simple item for a reputable contractor to show proof of. If they do not have insurance, this can be a red flag. If something happens during the remodel, you might be liable for any damages or injuries.

How Did You Hear About Them?

Word of mouth is almost always going to be the best test. Do you know anyone who they have completed a project for? How did that project go? Any surprises? Reviews can be helpful but unfortunately, we live in a day and age where reviews are easy to manipulate, both good and bad.

The Project

Once you have decided on a contractor for the bathroom remodel, you will want to work with them on expectations for how the renovation will go. These include:

Completion Date

When do they expect the project to be done. This will vary depending on how big or small a renovation you are doing. Some projects can be completed in a day. Others may take a week. An experienced professional should be able to walk you through what is involved in the project and give you a timeframe for completion. There is always a possibility for unexpected challenges to arise during the project that might be out of their control, but for the most part they should be able to provide a fairly accurate completion date. This is also a good time to ask about the livability of the home during the renovation. Will you be able to stay in the home or do you need to be out? Are you okay with 4 people coming into your home at 7am each morning and making all kinds of noise? Are there any dangers to you being in the home during construction? In general, if you are only concentrating on one bathroom and you have another one, you can stay in your home but you might want to make other arrangements. Having a good timeline can really help.

Unexpected Delays During a Bathroom Remodel

While we all want projects to go perfectly, they sometimes don’t. It is just a part of life. Asking your contractor how they handle delays can help expectations. Do they have time built into the project? Will they leave your project for another one if there are delays? Delays can be caused by both seen and unforeseen issues. If you project is scheduled the same day a category 5 hurricane is going to hit your area, there isn’t much your contractor can do and would classify as an unforeseen delay. If you are using custom made materials (tiles, vanities and so forth) there is a higher possibility that there might be delays in those materials coming in. That would classify as a foreseen delay, one that you hope goes as planned but should not be surprised if there is a delay in getting them.

Unexpected Issues During a Bathroom Remodel

This is the hardest one to plan for and it can cause both financial strain as well as adding to the timeline. During a bathroom remodel, unexpected issues are a common – especially ones that involve areas where water is present. You can never be 100% certain what you are going to find behind old tiles, tubs, vanities and so forth. Have the floor boards been compromised? Is there black mold growing? Are there any plumbing, electrical or structural issues that need to be dealt with? Using a local contractor can help you navigate common issues in your area and help to predict what they might find. Asking your contractor if they have a contingency plan for what might arise can help lessen surprises during the project.

The Materials

You now have a contractor and have gone over what to expect with the project. Something that can be overlooked are the materials that will be used. Generally, you will sit down with the contractor and/or designer to walk through all aspects of the project. You will choose tiles, countertops, faucets, a tub, paint color and so forth. Here is where you can ask questions about availability. Asking if a material will need to be custom ordered or if it is a stocked item at their supply house can reduce the chances the project will be delayed. We are not saying you should always use stocked items, just know that you might need to build in a little extra time if you are ordering custom made items. An overlooked item in bathroom renovations can be the exhaust fan and it is one of the most critical items. Too often the exhaust fan is an afterthought and, in some areas, not even installed. You are probably paying thousands of dollars for your renovation so you will want to protect it from mold, mildew, smells and other usage related issues. Too often we see contractors installing low-cost fans just to meet the requirement. No always, but it is common. Being an advocate for yourself can go a long way. It is beneficial to have a respectful conversation with your contractor to ensure the exhaust fan is large enough to handle the bathroom usage, quite enough that it will not be distracting, is energy efficient and has the functions (light, humidity sensor, heat…) that you require. Having this conversation upfront can ensure the experience is a good one. In actuality the contractor will be happy to have them with you as the last thing they want to have to do is come back because the exhaust fan of all things is not up to your standards.

Summary

Hiring the right contractor who is willing to work with you through the entire renovation process from setting a timeline to choosing materials will reduce surprises during the project and make for an enjoyable experience and a beautiful bathroom. For more information on how to choose a bathroom exhaust fan, read through Air King’s blog post on the subject. For more information about Air King bathroom exhaust fans, visit airkinglimited.com.