T
he Federal Reserve has made its first interest rate cut in four years, reducing the rate by half a percent. This move could ease the real estate market, with mortgage rates now between 4.75% and 5%. Homebuyers are optimistic about the change, with one hopeful buyer saying it would "definitely change my 2025 goals." Mortgage rates had been high in recent years, peaking at 7.79% last fall, but have been falling in recent weeks to 6.2%.

    However, real estate expert Anthony Lamacchia notes that the Federal Reserve's rate cut doesn't directly affect mortgage rates. He believes that over time, more rate cuts will bring down mortgage rates even further, potentially making them lower within a year. Waiting for lower rates could lead to higher home prices in areas like Boston, where housing demand outpaces supply.

    Lower mortgage rates are expected to fuel demand and drive up prices, but Lamacchia suggests that as rates drop, more homeowners who have been holding off listing their homes due to high interest rates will enter the market. This could help balance out the demand. With more rate cuts expected, credit card and car loan interest rates are also likely to decrease, giving Americans some relief from inflation. The Federal Reserve has signaled it plans to cut rates twice more this year and four times next year.