For WSJ from Los Angeles—The Federal Reserve took a big swing at lowering interest rates with a half-percentage-point cut to its benchmark rate recently, but relief for home buyers may be slow coming. That could leave many would-be buyers reluctant to leave the sidelines, discouraged by continued high mortgage rates and tight home inventory.

Home sales may not really rebound until the second half of 2025, said Mark Palim, chief economist and senior vice president at Fannie Mae. He said activity could pick up once mortgage rates dip below 6%, “a psychologically important barrier for buyers.” Fannie Mae forecasts mortgage rates to go down to 5.7% by the end of 2025.

The average 30-year fixed-rate mortgage in the U.S. is now 6.08%, according to Freddie Mac down from recent peaks above 7.7% late last year.

Read full story here.