The Federal Reserve's 25-basis-point rate cut is not likely to alter the near-term trajectory of the housing market in a meaningful way, BofA Securities analysts said in a note Thursday.

Mortgage rates appeared relatively unchanged after the announcement, BofA said, adding that homebuilder stocks and mortgage rates already anticipated rate cuts following a rally in recent months.

The brokerage said it raised its price target on homebuilder stocks by an average of 8% to reflect higher market multiples and some signs of stabilization in housing demand recently.

BofA retained a buy rating on Meritage Homes (MTH), NVR (NVR), PulteGroup (PHM), Taylor Morrison Home (TMHC), and Toll Brothers (TOL), considering a relative upside to the broker's price targets and "more aggressive capital returns" to stockholders relative to other builders, according to the note.

Analysts reiterated a neutral rating on Dream Finders Homes (DFH), D.R. Horton (DHI), KB Home (KBH), and Lennar (LEN) as they are seen to have a balanced risk-reward at current valuations.

Price: 28.30, Change: +0.15, Percent Change: +0.52