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eter Boockvar, investment chief at One Point BFG Wealth Partners, believes the Federal Reserve's interest rate cut in September won't bring relief to prospective homebuyers. He argues that Fed rate cuts primarily impact short-term rates, which have little effect on long-term borrowing costs for consumers.

    Longer-term rates, such as the 10-year Treasury yield, drive borrowing costs and are currently elevated due to investor hesitation to invest in long-term government bonds amid growing deficits and heavy government borrowing. "I think there's a global aversion to taking on long-duration," Boockvar said. "So I think those looking to buy a home should not necessarily bet they're going to get rate relief with the cut in short-term interest rates."

    Boockvar also points out that the housing market is in dire need of new supply, which would help bring prices down. Even if mortgage rates edge lower, hotter demand could send prices higher unless the market gets an increase in available supply.

    The main obstacle to increased supply is that many homeowners are staying put due to high mortgage rates and home prices. According to a 2023 Redfin analysis, over 90% of US homeowners with a mortgage have financed at a rate below 6%. The median existing home price rose to a record $435,300 in June, making it difficult for people to sell their homes and move.

    Boockvar notes that if home prices were to drop, it would hit homebuilder profits, potentially limiting new housing supply. "It's sort of a catch-22 with this industry right now," he said. Economists are generally pessimistic about the outlook for housing affordability, with Redfin forecasting a 1% decline in median US home sale price by year-end and Zillow expecting a 2% decline.

    As a result, Boockvar doesn't expect the Fed to rescue the housing market. "Don't expect the Fed to rescue the housing market," he said.