Mortgage rates are starting to ease downward after the Fed's first-in-a-long-time rate cuts. While this seems like it should start to free up the housing market, there's a phenomenon that might keep the housing market tight for a while longer, the "lock-in effect."

In essence, people who purchased homes at a low mortgage interest rate may be reluctant to sell, knowing that they will be unlikely to get such a low rate again.

However, while there may be lower-than-usual inventory, this effect doesn't mean there's no hope of buying a home. Real estate experts suggest some workarounds.

When inventory is low, get creative, said Michael Kootchick, a real estate developer and owner of One Stop ADU. "Consider fixer-uppers or land to build on."

He shared how he developed a small housing community on vacant land during the last housing crisis. "We offered affordable custom homes, and despite the market conditions, the community sold out within 18 months."

See More: 5 Southern Cities Where You Can Buy a House for Under $100K

Another option is to build an ADU on your own property, Kootchick recommended. He pointed out that some states have made this easier to do.

"California passed new ADU laws in 2020 making it much easier to add a second unit. I've built over 200 ADUs, and in desirable areas they can increase property values up to 35%," he said.

You can then rent your ADU to generate income, do a cash-out refinance and use your increased equity to put a large down payment on a new primary residence. The ADU income can also help qualify you for a new mortgage.

For homeowners looking to move up, opt for a cash-out refinance to tap your equity, then use it as a down payment on your next home, Kootchick said. While this doesn't solve the problem of low inventory, it may enable you to consider properties you thought out of your financial league.

If you've got good credit, it's likely you can borrow up to 80% of your current home value, he said. "Sell your existing home once you've closed on the new one."

One of the best-kept secrets in a tight market is focusing on homes that need minor cosmetic upgrades, according to Scott Waters, realtor at REAL.

"Most buyers want move-in ready homes, but properties that need fresh paint, new flooring or updated fixtures are often priced lower and have less competition," he said.

These homes might require a bit more "sweat equity" but they allow buyers to build instant equity without undergoing significant renovations.

If you're a current homeowner planning to sell and relocate, don't forget to check if your company offers relocation assistance, Waters said.

"Many larger employers have programs to help you sell your current home and provide financial incentives or purchase assistance in your new area," he explained.

These programs are often underutilized, but can take much of the stress out of managing two properties and provide valuable connections to local realtors and movers.

For both first-time buyers and current homeowners, distressed properties and foreclosures are an untapped opportunity in a low-inventory market.

"These homes typically require more work, but banks and motivated sellers are often willing to negotiate significantly lower prices," Waters said. "It's not glamorous, but buying a foreclosure can get you a property well below market value in neighborhoods you might otherwise be priced out of."

There are always options in a tight market -- you just have to think outside the box. With the right financing and creative strategies, you can achieve your goals despite limited inventory.

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This article originally appeared on GOBankingRates.com: 6 Ways To Get Around the Real Estate 'Lock-In Effect' and Buy a Home