The Federal Reserve is considering a 25-basis-point rate cut in September 2025 amid cooling labor markets and near-2% inflation.
Mortgage rates have already fallen to 6.59%, and a cut could push them lower, improving affordability for buyers.
Homebuyers, especially first-time and relocating buyers, are advised to secure pre-approvals and lock in rates quickly due to limited inventory.
Real estate investors should focus on high-growth markets and resilient sectors like industrial, multifamily, and REITs to benefit from lower borrowing costs.
Risks remain from potential rate-holding surprises or inflationary shocks, so diversified portfolios and hedging strategies are recommended.