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.

Sales decreased 2.5% month on month to a 3.86 million according to a report from the National Association of Realtors

Sales were 4.2% lower than August 2023. It marks three straight months of sales below the 4 million mark, annualized. This count is based on closings — contracts that were likely signed in late June and July,