What will happen to home prices as interest rates are cut?

Interest rates have been trending downward, with the Federal Reserve implementing its first cut of 2024 in September. Analysts predict more cuts could follow in the final months of this year and into 2025, potentially reshaping the real estate market.

But lower rates don’t always mean better deals or lower home prices. In fact, rate cuts can affect the housing market in surprising ways. Some experts predict rising prices, but declines and stability are also plausible under certain circumstances.

We’ve consulted industry professionals to break down each possibility. Their insights below can help you decide if you should buy a home in the coming months.

 

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