The Federal Reserve voted Sept. 17 to cut the federal funds rate by one quarter of a percentage point. It was a move long anticipated by financial markets, and also by regular folks watching the housing market: Potential home buyers who've been sidelined by high mortgage interest rates and newer homeowners hoping to refinance their loans.

Major U.S. lenders lowered a key interest rate on Wednesday, providing U.S. consumers a reprieve on borrowing costs, after the Federal Reserve cut interest rates for the first time this year.

At the same time, Fed Chair Jerome Powell highlighted “a challenging situation” for policymakers, noting that risks to inflation were tilted to the upside and risks to employment to the downside.