The Federal Reserve’s interest rate cut last week has given prospective homebuyers something to celebrate: lower borrowing costs.

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The Federal Reserve has cut its benchmark interest rate for the first time in more than four years, which will have consequences for mortgage rates, car loans and credit card debt. The Fed’s half-point rate cut is a major strategic shift and a sign policymakers believe they’re winning the war against inflation.

Members of the FOMC also provide their individual guesses on where the fed funds rate will be in the future. The consensus of those guesses is that interest rates are likely to be much lower by the end of this year, and even lower again in 2025 and 2026. Here's how many cuts could be on the table.

As rates fall after the Fed's September meeting, experts say it's a good time to look at large, financed purchases and refinancing debts.

Some forecasters expect the Fed to cut interest rates by a quarter-point Wednesday. Most, however, expect a half-point reduction. The CME FedWatch forecast tracker favored a half-point cut by a 55-45 margin at midday. (Earlier Wednesday, forecasters rated the probability of a half-point reduction even higher.)