The Federal Reserve lowered its main interest rate by a quarter of a percentage point on Wednesday, marking the first cut of the year. The move comes as the central bank looks to support the economy amid slower job growth and lingering inflation.

For home buyers and sellers, the change could bring some needed relief. Mortgage rates, which have been stubbornly high for more than a year, have already started to dip. The average rate for a 30-year fixed mortgage is now about 6.4%, down from over 7% earlier this year, which translates into potentially more affordable mortgage payments for buyers and may encourage some people who were waiting to enter the market.

Refinancing activity is also picking up, with many homeowners taking advantage of slightly lower rates to replace their existing loans with more affordable ones.

Sellers may also feel an impact. Many homeowners have been hesitant to sell because moving would mean taking on a mortgage at today’s higher rates. A lower rate environment could give them more confidence to list their homes, which would help ease the supply shortages that have kept home prices high.

Fed officials have hinted at the possibility of additional cuts later this year, which could bring mortgage rates down further. Until then, the market remains defined by contrasts: record-high prices and steady sales on one hand, affordability concerns and builder uncertainty on the other.