Two successive cuts to U.S. interest rates have dominated the real estate landscape these past months.
The Federal Reserve’s rate cuts of 0.25% on September 17 and October 29 – lowering its top interest rate to 4.00% – could boost the housing market and spur new home construction.
With real estate market momentum shifting, now could be the time to buy a property.
Federal Home Loan Mortgage Corporation data shows that 30-year fixed mortgage rates averaged 6.35% in September, down from 6.59% in August. Lower borrowing costs mean more purchasing power.
Lower mortgage rates will also benefit many luxury homebuyers. According to the Realtor.com® “Cash Is King” report, published October 7, roughly 60% of sales above US$1 million were mortgage-financed in the first half of 2025 – though a majority of sales over US$2 million were paid for in cash.
Key data from the “Residential Real Estate Market Snapshot Report,” published by the National Association of REALTORSⓇ (NAR) in September 2025, suggests potential homebuyers at all price points should get off the sidelines.
According to NAR, there were 1.53 million homes available to buy across the U.S. in August 2025, down 1.3% from July, but up 11.7% year-over-year. More homes to choose from means more negotiating power for homebuyers.
Meanwhile, home pricing has been subdued: NAR’s September-published “Existing-Homes Sales” data shows the median sales price for existing single-family homes was US$427,800 in August 2025—up just 1.9% year-over-year and 1% down from July.
Lower rates and wider market conditions together offer “savvy buyers a sweet spot,” says Dr. Jessica Lautz, deputy chief economist and vice president of research at NAR.
She adds that if rates continue to fall, “the target interest rate should have a domino effect into the mortgage market. Rates in the low 6% range should continue in 2026.”
Cover Property: Pebble Beach, California