For the first time since last year, the Federal Reserve is lowering interest rates. The Fed cut its benchmark interest rate by 0.25 percentage points to between 4% and 4.25%. 

Financial experts have been anticipating these cuts for some time, and the belief is there will be two more cuts by the end of the year. 

"The reason the Federal Reserve is cutting rates is because we are seeing basically flat employment market situation," explained Brian Bethune, an economics professor at Boston College. "Almost no growth in employment now for several months." 

Bethune said companies were hit by tariffs but began absorbing the cost increases rather than raising prices. He says this gave the Federal Reserve room to reduce the rate, however, to save money, companies curbed hiring or cut jobs. 

"There have been some pretty significant layoffs, so people trying to find employment are struggling. So the duration of unemployment is rising rapidly," said Bethune. 

What it means for homebuyers

Even though the rates are dropping, Bethune says people looking to buy a home will find that lenders have already taken this potential drop into account for some time. 

"Tomorrow, if you call your bank, you will find their quotes are basically the same rate as if you quoted today," said Bethune. "It helps for people, let's say who were at close to a decision point [on buying a home], so you needed something to tip you over." 

He expects mortgage rates to go down, but not significantly. While some homebuyers may be able to take advantage of the savings, Bethune thinks the uneasy job market may hold back other buyers. 

"If you have more concern about your current job situation, or you are in the process of changing, then the situation right now is not good," said Bethune. 

Interest rates on loans

If you have a long-term home loan, and are thinking about refinancing, Bethune suggests waiting a month or two for further cuts. 

He believes the biggest benefit will be to small businesses who borrow at a high prime rate, whereas people saving money will lose out with lesser interest rates. "It would have been advisable to have locked in some maturities before today," said Bethune. 

Americans will still have time to grab a CD before expected cuts in November and December.