Sales of previously owned homes in the United States fell sharply in August, despite mortgage rates plummeting that month. But much more housing demand will likely be unleashed onto the market after the Federal Reserve finally cut interest rates this week for the first time in four years — and signaled more rate cuts by year’s end.

The Fed's decision will lower borrowing costs from a 23-year high as the central bank pivots to shoring up economic growth.

The Fed was behind the curve when raising interest rates to corral inflation and the lesson appears to have been learned. By making a larger half-point interest rate cut right from the get-go, the Fed is taking out some insurance against being behind the curve again. — Greg McBride, CFA , chief financial analyst for Bankrate