The Federal Reserve approved a quarter-point interest rate cut on Wednesday, the first time it had done so since December 2024, and indicated that two more rounds of rate cuts could be coming before year’s end. While that may seem like good news at the outset, experts (and even the Fed chairman himself) warn that it’s unlikely to majorly move the needle when it comes to mortgage rates or jump-starting the housing market.

“Most analysts think it would have to be a pretty big change in rates to matter a lot for the housing sector,” Fed chairman Jerome Powell said in a press conference after the announcement. Powell referred to the rate reduction as a “risk-management cut” made in response to rising unemployment, noting that inflation remains high, hence the central bank’s decision to slow

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