Lower rates would likely pull buyers back, and most of the price cuts in the headlines are smaller than they look. Take this as a framework rather than a prediction, since nobody can promise where rates or prices go. Cheaper money pulls buyers off the sidelines; that part is straightforward. A return to the frenzy of a few years ago is much less likely, because affordability would still be stretched even with some relief. Expect a move back toward normal before you expect a boom. On price cuts, be careful with the stat. A figure like "a large share of listings have taken a cut" counts any reduction against the original list price, and plenty of those cuts are token, sometimes a single dollar, just to refresh a listing's position on the portals. The pattern underneath: desirable, well-priced homes keep selling near asking, while overpriced homes take the big reductions. If demand returned, sellers would face less pressure to cut, since more buyers means less need to chase the price down. Regional inventory has been climbing off its lows while generally staying below pre-2019 levels, which is part of why prices have held. Watch the inventory trend in your submarket; it drives the outcome more than the rate headline does.