Forbes Advisor

Borrowers are finally starting to see signs of hope.

Mortgage rates are at their lowest point in 18 months—and expected to fall further—after the Federal Reserve cut short-term interest rates by 0.50% or 50 basis points for the first time since the onset of the pandemic.

If you’re debating whether to refinance or thinking about buying a home, this new environment presents a question: When should you act?

Don’t expect mortgage rates to fall dramatically after the Fed’s decision to cut the federal funds rate.

“The first rate cut has been baked in,” says Jessica Lautz, deputy chief economist at the National Association of REALTORS® (NAR).

The good news is that conditions are starting to improve.

The median sales price on homes sold was $412,300 in the second quarter of 2024, which is roughly $25,000 lower than two years ago. Mortgage rates are coming down, and the supply of homes for sales has ticked up in recent months, according to NAR.

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