Rates just lowered, but potential home buyers are facing several other obstacles that could keep the American dream of owning a home out of reach.

Washington

The Federal Reserve has reduced interest rates by a quarter of a percentage point, marking the first decrease since December 2024. While this move could lower mortgage rates and potentially make home loans more affordable, many Americans still face significant barriers to homeownership, including high property prices, limited housing inventory, and rising living costs.

Recent data from the Census Bureau shows declines in building permits, housing starts, and completions compared to the previous year. The median cost of a home in the United States now exceeds $400,000, with some regions seeing prices above $2 million. First-time homebuyers are older than in previous decades, and the income required to purchase an average home has risen to around $111,000 with a 20% down payment. Despite the rate cut, economists note that further reductions may be needed to improve affordability.

What could the Fed's rate cut mean for getting a home loan?

THE FED RATE CUT IS SOMETHING PRESIDENT TRUMP HAS BEEN PUSHING FOR SINCE THE START OF A SECOND TERM. IT COULD HELP MORTAGE RATES, BUT LOTS OF AMERICANS SAY THAT DOESN'T MATTER BECAUSE HOMES ARE JUST TOO DARN EXPENSIVE. SCRIPTURES NATIONAL CORRESPONDENT KATIA TUBMAN IS LIVE FOR US IN NEW YORK. KATIA, IS THE AMERICAN DREAM MORE ATTAINABLE TODAY THAN IT WAS BEFORE THE FED RATE CUT? WELL, THAT'S THE QUESTION RIGHT NOW, DELL. WE KNOW RIGHT NOW THAT INTEREST RATES HAVE FINALLY DROPPED, BUT POTENTIAL HOME BUYERS ARE FACING MAJOR AND MULTIPLE OBSTACLES TO OBTAINING THE AMERICAN DREAM OF HOME OWNERSHIP, AND THAT MIGHT BE KEEPING IT OUT OF REACH. BUYING A HOME IS BECOMING INCREASINGLY DIFFICULT TO ACHIEVE. I'LL BE RENTING FOR THE REST OF MY LIFE. ALL YOU CAN DO IS SAVE, SAVE, SAVE, AND EVEN THEN IT MAY NOT BE ENOUGH. THAT REALITY REFLECTED IN NUMBERS RELEASED WEDNESDAY BY THE CENSUS BUREAU, WHICH SHOWS A DECREASE IN PRIVATELY OWNED BUILDING PERMITS, HOUSING STARTS, AND HOUSING COMPLETIONS LAST MONTH COMPARED TO AUGUST 2024. JESSICA LOUTS IS A DEPUTY CHIEF ECONOMIST AT THE NATIONAL ASSOCIATION OF REALTORS. The typical cost of a home for both new homes and for existing homes is above $400,000 nationwide. That being said, in some areas of the country, the median cost for an existing property actually tops $2 million. FIRST TIME HOME BUYERS MAKE UP ONLY 24 PERCENT OF ALL PURCHASES, AND THEY'RE GETTING OLDER. THE MEDIAN AGE FOR A FIRST-TIME HOME BUYER IS NOW 38, AN ALL-TIME HIGH, AND A STARK CONTRAST TO THE 1980S WHERE FIRST-TIME HOME OWNERS WERE TYPICALLY IN THEIR 20S. First-time home buyers have headwinds within the housing market, such as housing affordability and limited affordable housing inventory, but we also know that there's headwinds outside of that housing market, so saving for a down payment when you're paying higher rent and student loan debt and child care costs make it very hard for a young adult. BUT THERE MAY BE SOME RELIEF ON THE WAY, WITH THE FEDERAL RESERVE LOWERING INTEREST RATES BY A QUARTER OF A PERCENTAGE POINT, THE FIRST DECREASE SINCE DECEMBER 2024. And that change in mortgage interest rates could help some home buyers into the market. If we look at the cost of the mortgage, it really does mean a difference of $148 per month for the typical price of a home, so that could be a game changer for some buyers. HOPEFULLY ENOUGH OF A SAVINGS TO HELP SOME STRUGGLING TO ACHIEVE THE AMERICAN DREAM. THE FEDERAL RESERVE, DELL, SIGNALED TODAY THAT TWO MORE INTEREST RATES COULD BE COMING BEFORE THE END OF THE YEAR. MANY ECONOMISTS HAVE FORECASTED THAT THERE WILL BE A FEW MORE CUTS BY THE MIDDLE OF 2026 TO HELP THE ECONOMY KEEP GROWING. DELL? Katie, I don't want to hurt your feelings. You just replayed my housing life. My first house was $56,000. That was a few decades ago. Truth of the matter is, now, with the average home being more than $400,000 nationwide, the house I live in, if I were to sell it, I could not afford to find another place to live. Things are just that bad. So how much does someone have to make in order to be able to buy a house these days? Well, yeah, things might just be bad if you were trying to look right now. An analysis from the National Association of Realtors found that right now, households would actually need somewhere around an income of $111,000 and to put down 20% just to afford the average home across the United States. And those who do not put down 20% would have to have an even higher income just to keep up with a higher mortgage. Dell? And that's if you don't live in New York, Los Angeles, or Washington, D.C., Miami, Chicago, and I can go on and on. Our national correspondent, Katie Tubman. Katie, thank you very much.

U.S. President Donald Trump signaled new action against left-wing groups following the assassination of right-wing political activist Charlie Kirk, targeting the anti-fascist Antifa movement as a "terrorist organisation."

Trump targets Antifa movement as 'terrorist organization'

ABC said that the late-night show "Jimmy Kimmel Live!" has been "pre-empted indefinitely" after comments Kimmel made on the show in response to the shooting death of conservative activist Charlie Kirk. Jonathan Vigliotti reports.

New York

ABC suspends Jimmy Kimmel show over Charlie Kirk comments

In southern Pennsylvania, three police officers were fatally shot and two others were injured in a violent incident. Authorities are investigating the circumstances surrounding the attack and searching for leads on the suspect or suspects involved.

Haar Road

Three police officers killed, two wounded in Pennsylvania shooting

Nvidia chief executive Jensen Huang said the U.S. and Beijing "have larger agendas to work out" after media reports of China's internet regulator ordering top tech firms to halt purchases of the American company's AI chips and cancel existing orders.

Beijing

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The U.S. Federal Reserve announced that it lowered interest rates by 0.25 percentage points, its first rate cut since December 2024. CBS News MoneyWatch correspondent Kelly O'Grady has more.

Fed cuts interest rates by 0.25 percentage points

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London

Trump's historic UK state visit met with protests in Windsor

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Jerusalem

Middle East Conflict

Israel committing genocide in Gaza, UN inquiry finds

Yulia Navalnaya, the wife of late Russian opposition leader Alexei Navalny, said that foreign laboratory tests on biological samples obtained from her husband showed that he was poisoned.

Yulia Navalnaya says foreign tests show her husband was poisoned

Prosecutors formally changed Tyler Robinson, the suspect in the assassination of Charlie Kirk, and said they intend to seek the death penalty. Authorities also revealed exchanges between Robinson and his roommate.

Utah County

Prosecutors formally charge Charlie Kirk shooting suspect

U.S. President Donald Trump and first lady Melania Trump arrived at Windsor Castle and were greeted by King Charles III, Queen Camilla, Prince William and Kate, the Prince and Princess of Wales. CBS News' Ed O'Keefe has the latest.

Windsor

Trump greeted by British royal family at Windsor Castle

The eyes of the global financial markets are on the US Federal Reserve. It's expected to be cut later on Wednesday, around a quarter-point. But US President Donald Trump has called repeatedly for much steeper rate cuts.

Global markets watch as Trump challenges Fed independence

The U.S. Secretary of State has visited Qatar a week after Israel attacked a meeting of the Hamas negotiating team in Doha. Marco Rubio met Qatar's Prime Minister and the Emir, Sheikh Tamim Bin Hamad Al Thani.

Doha

Marco Rubio visits Doha, holds talks with Emir and PM

Utah County Attorney Jeff Gray provided updates Tuesday on the case against Tyler Robinson, the 22-year-old accused of fatally shooting Charlie Kirk. Robinson is charged with seven counts, including aggravated murder. The state is seeking the death penalty.

Charlie Kirk shooting suspect charged with murder

A judge has dismissed two state terrorism-related charges against Luigi Mangione, the 27-year-old accused of killing UnitedHealthcare CEO Brian Thompson last December. CBS News' Anna Schecter has more details.

Luigi Mangione's state terrorism charges dismissed in CEO killing

Israel said it has launched its ground offensive in Gaza City. It comes as a United Nations inquiry finds that Israel's nearly two-year war on Gaza is a genocide. Israeli leaders have denounced the report as "distorted and false."

Israel launches main phase of ground offensive in Gaza City

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U.S. President Donald Trump announced Monday (Sept. 15) the U.S. military carried out a second strike against an alleged Venezuelan drug boat. CBS News' Charlie D'Agata has the latest.

Caracas

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U.S. President Donald Trump threatened investigations into the ‘radical left,’ following the shooting death of Charlie Kirk. Vice-President J.D. Vance on Kirk’s podcast encouraged people to turn in those who celebrated the conservative commentator’s killing.

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The United States and China reached a framework agreement to switch short-video app TikTok to U.S.-controlled ownership, U.S. officials said.

Washington County

U.S., China reach framework deal on TikTok

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HBO's medical drama, "The Pitt" beat out heavily-favored Apple TV's "Severance" for outstanding drama series at the Emmy Awards. Meanwhile, Apple TV's "The Studio" walked away with 13 awards and broke the Emmy record for the most wins by a comedy in a single season.

Los Angeles

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U.S. Secretary of State Marco Rubio arrived in Israel on Sunday to meet with Prime Minister Benjamin Netanyahu and other officials amid the nation's recent strike in Doha, Qatar, and intensified attacks in Northern Gaza.

Israel hosts U.S. Secretary of State Marco Rubio

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U.S. and Chinese officials concluded a first day of talks in Madrid on their strained trade ties, a looming divestiture deadline for Chinese short-video app TikTok, amid Washington's demands that its allies place tariffs on imports from China over its purchases of Russian oil.

Madrid

Global Tariffs

U.S., China begin trade talks in Spain as TikTok deadline looms

Police are searching for a motive in Wednesday's killing of conservative activist and influencer Charlie Kirk. Authorities say interviews with family and friends of the 22-year-old suspect suggest he could have been radicalized in the dark corners of the internet.

Orem

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U.S. Secretary of State Marco Rubio said ahead of the trip that he will be seeking answers from Israeli officials about how they see the way forward in Gaza. Rubio's trip comes after Israel's attack on Hamas leaders in Qatar that upended efforts to broker an end to the conflict.

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San Juan

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U.S. President Donald Trump said he believes the Russia-Ukraine war would end if all NATO countries stopped buying oil from Russia and placed tariffs on China of 50 percent to 100 percent for its purchases of Russian petroleum.

Breakdown