The Fed has just trimmed interest rates by 0.5% and, according to Goldman Sachs Research analysts, the central bank is likely to deliver three more 25 basis point rate cuts by the end of the year. But it will take "a slow but steady grind" over the coming years to make housing affordable again, as house prices continue to rise, the same analysts predict.

"We think we will get back near a healthy level of affordability by the end of the decade, so it will be a five-year odyssey of slow normalization," analyst Vinay Viswanathan said in an interview posted on the company's website.

At the same time, he expects home prices to appreciate by 4.5% this year and 4.4% in 2025 – in each case more than predicted in April. In the past year, home prices have risen by more than the historical trend of 5% to 5.5%. Since the pandemic, he noted, the nation has experienced "the strongest home price growth we've seen in the country's history: around 20% on an annualized basis."