Cutting the interest rates may not help real estate market. In fact, interest rates were already at 4.75% on 31 July 2019, which is low, The New York Times notes. To clarify, the average mortgage interest rate over the past 30 years was 6.25%. In contrast, Freddie Mac estimates the average mortgage interest rate was 3.75% on 1 August 2019. New home sales fell by 2% between June 2018 and June 2019, The New York Times estimates. Moreover, investment in residential structures has been falling for six straight quarters. Under those circumstances new home sales are below their post 2008 peak in 2017.