Sales of previously owned homes in the United States fell sharply in August, despite mortgage rates plummeting that month. But much more housing demand will likely be unleashed onto the market after the Federal Reserve finally cut interest rates this week for the first time in four years — and signaled more rate cuts by year’s end.

The Fed announced a cut of 50 basis points and lowered its key rate to roughly 4.8 per cent, Associated Press ( AP) reported. This is down from a two-decade high of 5.3 per cent, where it had stood for 14 months, as it struggled to curb the worst inflation streak in four decades.

In a widely anticipated move, the Federal Reserve announced on Sept. 18, 2024, that it was cutting its benchmark interest rate by half a percentage point to a range of 4.75% to 5% – the first time the cost of borrowing has been lowered in four years.