US housing starts are projected to rebound to 1.310 million following a significant decline, though they remain well below the healthy construction level of 1.6 million. Analysts attribute the downturn to the aftermath of the housing crash and the subsequent impact of high interest rates, which have hampered recovery despite initial boosts from lower rates during the pandemic. As the Federal Reserve prepares to cut rates, Gary Cohn, former chief economic adviser, warns that these cuts are already reflected in mortgage rates, which may not provide substantial relief to homebuyers facing high costs. The average 30-year fixed mortgage rate has slightly dropped to 6.2%, but affordability remains a major issue. Cohn also noted rising credit card delinquencies and a softening job market, indicating broader economic pressures. Overall, while rate cuts are anticipated, their effectiveness in revitalizing homebuying may be limited due to existing financial strains.