Real Estate

Don’t Wait: How the Fed’s Rate Cut Makes Now the Best Time to Buy a Home

Federal Reserve‘s rate cut drops mortgage rates, prompting experts to advise buying homes now.

byAndres Castro

October 30, 2025, 10:20 PM

View of tall, modern skyscrapers in downtown Miami rising behind a green park with palm trees.

The impressive skyscrapers of downtown Miami are visible from Bayfront Park, Florida. By MDL.

Executive Summary

The Federal Reserve implemented its second interest rate cut in two months, lowering the benchmark overnight borrowing rate to 3.47-4% and causing mortgage rates to drop to 6.19%, the lowest in years.

Real estate professionals are advising potential homebuyers that the current 6.19% mortgage rate is historically favorable and presents an opportune moment to enter the market, leading to increased home closings.

Experts caution against waiting for mortgage rates to fall further, emphasizing that the exceptionally low 2-3% rates seen during the recession and pandemic were an anomaly and are unlikely to return.

The Trajectory So Far

The Federal Reserve’s recent decision to implement its second interest rate cut in two months has significantly lowered its benchmark overnight borrowing rate, directly leading to a drop in mortgage rates to 6.19 percent, a level not seen in years. Real estate experts are advising potential homebuyers that these historically favorable rates present an opportune moment to enter the market, cautioning that the exceptionally low rates observed during the recession and pandemic were an anomaly and are unlikely to return.

Assessing Risk and Value

The Federal Reserve’s second interest rate cut, bringing mortgage rates down to 6.19%, signals a more favorable borrowing environment for real estate investors, potentially increasing the attractiveness and affordability of new property acquisitions or refinancing existing assets. This reduction is already stimulating homebuyer activity, suggesting a strengthening housing market that could benefit real estate developers and related sectors. However, investors should heed expert warnings that the ultra-low rates seen during the pandemic are unlikely to return, recalibrating risk and value assessments based on current rates being a new, historically favorable baseline rather than a temporary dip towards past anomalies.

Expert Predictions and Forecasts

Real estate professionals, like Anna Lowder and Evan Moor, advise that the current market conditions, with mortgage rates at 6.19 percent, present an opportune moment for homebuyers due to historically favorable rates and a strong labor market.

Some potential homebuyers are adopting a “waiting game” approach, anticipating that mortgage rates will fall even further before they decide to purchase a home.

The Federal Reserve has implemented its second interest rate cut in two months, significantly lowering its benchmark overnight borrowing rate to a range of 3.47 to four percent, the lowest since 2022. This move is expected to further impact mortgage rates, which already saw a drop last week, reaching 6.19 percent—a level not seen in years, according to local real estate experts in Montgomery, Alabama.

Real estate professionals are advising potential homebuyers that now is an opportune moment to enter the market. Anna Lowder, Director of Development for Hampstead Homes, noted that the current 6.19 percent mortgage rate is among the lowest recorded in the past 50 years in the United States. She highlighted increased market activity, with September seeing one of the highest months for home closings in years, a trend she anticipates will continue through the end of the year.

Market Dynamics and Buyer Expectations

Economist Evan Moor of the Alabama Association of Realtors attributes the positive trend to a strong state labor market combined with lower average mortgage rates, which have collectively boosted home sales. Despite this, a recent CNBC housing market study indicates that many clients still expect mortgage rates to fall further, leading to a “waiting game” among some buyers.

Lowder addressed this sentiment, acknowledging that while rates were in the high sevens, the current decline to 6.1 percent makes it an attractive time. However, she cautioned against waiting for the two or three percent interest rates seen during the recession and pandemic. Lowder emphasized that those exceptionally low rates were an anomaly and are unlikely to return, positioning the current 6.19 percent as historically favorable.

Key Takeaway for Homebuyers

With the Federal Reserve’s recent rate cut and the subsequent drop in mortgage rates, real estate experts strongly suggest that the current market conditions present a prime opportunity for those looking to purchase a home. The prevailing sentiment among industry professionals is that the moment to buy is now, rather than anticipating a return to unprecedentedly low rates that are not expected to materialize.