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.

At the same time, mortgage rates measured weekly by Freddie Mac descended to 6.09% this week, the 30-year fixed rate’s lowest level since early 2023. What gives? The Fed cut int