Fed rate cuts are unlikely to lower borrowing costs for American homebuyers, according to one CIO. Mortgage rates and home prices remain elevated.

Futures markets are also expecting a rate cut. Investors peg the chances of a quarter-point interest rate cut at nearly 96%, according to the CME FedWatch Tool, a measure of market sentiment.

A Federal Reserve interest rate cut in September, the first this year, followed perhaps by another before year-end remains the base forecast for most economists polled by Reuters.