We show that easing homebuyer liquidity constraints significantly boosts consumption through its impact on housing market activity. For identification, we exploit a large UK mortgage market stimulus program and employ difference-in-differences analyses using administrative mortgage data linked to transaction-level expenditure data. Our findings show that easing liquidity constraints led to a 14.3% increase in aggregate home purchases, driven entirely by previously constrained homebuyers. This increase in home buying activity resulted in a 3.8% rise in consumption per standard deviation of exposure to the easing, primarily due to higher home-related and non-durable consumption of new homebuyers, as well as local demand effects. Notably, previously constrained homebuyers exhibited significantly higher consumption increases following their home purchase.