For home shoppers, the Fed’s big rate cut is likely just a small step towards affording a home

AP Business Writers

The Federal Reserve gave home shoppers what they hoped for this week: a big rate cut and a signal of more cuts to come. Even so, aspiring homebuyers and homeowners eager to refinance should temper their expectations of a big drop in mortgage rates from here. That’s because mortgage rates already fell in anticipation of the Fed’s action. So, while mortgage rates are likely to fall further as the Fed implements more cuts, by how much and how quickly is uncertain. The pace of those declines will also affect those who did buy recently at higher rates and are hoping to refinance.