Federal Reserve Cuts Interest Rates For First Time Since 2020

The Federal Reserve has implemented its first interest rate cut since the pandemic, lowering rates by 0.5% to a range of 4.75-5%, a move that is expected to stimulate economic activity, particularly in real estate across major U.S. cities. In Chicago, developers anticipate that the cut will accelerate apartment construction projects that had stalled due to rising costs. Meanwhile, in Miami-Dade, real estate experts believe the reduction will gradually improve the housing market by reducing borrowing costs, although immediate changes may be limited. The Bank of Canada has also cut its benchmark rate amid a recovering housing market but is cautious about future cuts, signaling a potential rebound in home prices. Across the U.S., realtors in Kansas City are optimistic that the Fed's decision will energize the local housing market as lenders begin to lower rates. Overall, while the cuts are seen as a positive step for consumer confidence and borrowing, experts emphasize that the effects may take time to materialize.