There’s growing consensus that the Federal Reserve may lower interest rates in September 2025. While a quarter-point cut might sound modest, the ripple effects on the housing market could be significant. For homebuyers, lower borrowing costs can translate into thousands of dollars saved over the life of a loan. For sellers, cheaper mortgages can bring more buyers into the market, leading to faster sales and stronger offers.
At Houwzer, we know that timing matters—but so does working with a brokerage that saves you money no matter what rates are doing. That’s why our full-service, 1% listing commission agents ensure you keep more equity when selling and enjoy commission rebates when buying.
The Federal Reserve’s benchmark rate—the federal funds rate—is not the same as a mortgage rate, but the two are linked. The Fed’s rate influences borrowing costs throughout the economy. When the Fed raises rates, mortgages often become more expensive; when it lowers them, borrowing costs generally ease.
The Fed makes these decisions based on its dual mandate: managing inflation while supporting employment. If inflation cools and the job market shows signs of slowing, a rate cut becomes more likely. This balance is why September is shaping up to be a pivotal moment.
Multiple top analysts now believe a September cut is increasingly likely. J.P. Morgan recently moved its forecast forward from December to September, anticipating a quarter-point reduction with more cuts in subsequent months. Goldman Sachs is projecting a series of consecutive cuts starting in September, potentially bringing the federal funds rate to 3–3.25% by 2026.
Markets are reflecting this outlook. Prediction tools and trading platforms indicate high probabilities—above 90% in some cases—that the Fed will cut in September. You can watch these probabilities shift in real time using the Polymarket Fed Rates dashboard.
For buyers, a Fed rate cut can provide relief by lowering mortgage rates. Even a modest decrease can improve affordability. On a $400,000 loan, a 0.25% drop in interest rate can save around $30–50 per month—amounting to thousands in long-term savings. Lower rates also boost purchasing power, allowing you to consider homes that might have been just out of budget.
However, mortgage markets often anticipate Fed moves. By the time the cut happens, some of the impact may already be priced into current rates. That’s why acting now—or securing a rate lock—can be a smart strategy. At Houwzer, our buyer agents guide you through these decisions while helping you save through our commission rebate program.
For sellers, lower rates can drive demand. As mortgages become more affordable, more buyers enter the market, often resulting in increased competition and stronger offers. A rate cut could make the post-September housing market particularly active.
Even if rates remain unchanged, sellers can still achieve excellent results through smart preparation, professional staging, and strategic pricing. Our 1% listing commission model gives you the marketing and expertise of a traditional agent—without the traditional high commission.
The choice to buy or sell shouldn’t depend solely on the Fed’s timeline. Buyers ready to act today might avoid heightened competition later, while sellers could secure committed buyers before a rush hits. On the other hand, if a rate cut significantly increases affordability, waiting could work in your favor—especially if you’re both selling and buying.
The right answer depends on your goals, your financing, and your timeline. Our agents create strategies that take into account both your personal situation and the broader market outlook.
Market timing can influence outcomes, but the biggest driver of your bottom line is how much you pay for representation. Houwzer offers full-service buying and selling support for far less than traditional brokerages. Sellers keep more profit thanks to our flat listing fee, and buyers benefit from commission rebates that can help offset closing costs or fund home improvements.
Whether rates fall, rise, or hold steady, our approach ensures you walk away with more money in your pocket.
The September Fed meeting could mark the start of a rate-cut cycle, with meaningful implications for the housing market. While no one can predict the exact outcome, expert consensus and market pricing suggest a strong chance of relief ahead. Staying informed—and working with a brokerage that prioritizes your financial success—will help you make the most of whatever the market brings.
If you’re thinking about buying or selling, now is the time to prepare. Talk to a Houwzer agent, get pre-approved for a mortgage, and monitor the latest rate-cut odds with the Polymarket Fed Rates dashboard. The smartest move is one that puts you in control—and Houwzer is here to make that happen.