The Federal Reserve has made headlines with its first interest rate cut in four years, leading to a notable drop in mortgage rates. As a result, the average rate on a 30-year mortgage has fallen to 6.09%, marking the lowest level since early February 2023. This decline has sparked a surge in mortgage demand, with applications seeing a 14% increase as potential homebuyers rush to refinance amid the lowest rates in two years. Experts are weighing the implications of this rate cut, noting that while mortgage rates are trending downwards, they may not reach the anticipated 3% level. The housing market is responding with increased buying activity, as homeowners and prospective buyers look to take advantage of these favorable conditions. However, there remains uncertainty surrounding whether this trend will sustainably boost home sales or if the impacts will be felt gradually.