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 half-point reduction is expected to kick off a series of reductions extending into 2025, providing relief for prospective car and home buyers.

Sales at retailers rose slightly in August in a sign of resilience among U.S. households, suggesting the U.S. economy is still on solid footing as the Federal Reserve plots to cut interest rates.