Could lower rates get potential borrowers off the sidelines?

By dropping the federal funds rate by a half point, the Federal Reserve may have not only encouraged professionals in the real estate finance industry, but also may have signaled the go-ahead to consumers who have been waiting for the right time to start house-shopping. While the rate cut could have a positive psychological effect on some potential homebuyers, the full impact is not likely to be seen until early next year, according to experts consulted by Dodd Frank Update.