Fed Rate Cut Sparks Movement in the Housing Market

September brought a long-awaited shift in the real estate world: on September 17, the Federal Reserve officially cut interest rates for the first time in years. This move, though widely anticipated, has already sent ripples through the housing market — and in a good way.

Since the announcement, mortgage rates have seen a noticeable dip. Conventional loans are now hovering in the low-6% range, while FHA, VA, and USDA loans have dropped even further into the mid-5% range. For buyers, this change is opening doors that may have felt closed just a few months ago. Homes that once seemed out of reach are becoming attainable again, sparking renewed interest and activity across the market.

Sellers, too, are feeling the effects. After a slower-than-expected summer, the combination of falling rates and a return of motivated buyers is breathing new life into listings. Open houses are busier, and well-priced homes are seeing stronger offers.

That said, the broader economic picture remains one to watch. The Fed has hinted that two additional rate cuts could come before the end of the year — one in late October and another in early December. While experts don’t expect to see conventional rates drop below 6% until sometime in 2026, even modest reductions could continue to improve affordability and confidence heading into next spring’s market.

For now, both buyers and sellers have reason to be optimistic. With fresh momentum, improving rates, and pent-up demand, fall 2025 could shape up to be one of the most active seasons we’ve seen in a while.