The Fed finally lowered interest rates .5% What does this mean for buyers?

The Fed finally lowered interest rates .5%. Did rates fall too and what does this mean for buyers?

Although the Fed funds rate fell, mortgage rates are more closely tied to long term bond prices and bond investors has already priced in the rate cut.

What does all this mean for buyers? Rates are predicted to continue to fall through the end of the year and the Mortgage Bankers Association is predicting rates in the 5s sometime in 2025. As rates fall, more and more buyers will re-enter the market increasing competition.

Also, inventory of available homes has reached it's highest level of the year.

If you are thinking of buying, now may be a good time to take advantage of lower rates and higher inventory before competition heats up.