Home prices may pick up speed after the Fed cuts rates with 88% of the housing market still overvalued, Fitch says

• Home prices may pick up speed after the Fed cuts rates next year, according to Fitch.
• The ratings agency see prices rising as much as 3% next year and up to 4% in 2025.
• That would come after the Fed is expected to cut rates by 75 basis points in 2024.

Home prices may pick up speed after the Federal Reserve cuts rates next year, Fitch Ratings said, offering little relief to an already-overvalued housing market.

In line with the central bank's own projections, Fitch expects the Federal Reserve to cut interest rates by 75 basis points in 2024. 

Meanwhile, home prices are expected to move up 0%-3% next year, followed by a 2%-4% boost in 2025.