Rates on 30yr fixed mortgages have dropped due to the FED cut.
When this occurred last time the FED fund rates were lowered but then the mortgage rates had a huge increase in the following days/weeks.
Mortgage rates are determined by the 10yr bond...
If the market is doing well then nobody will invest into the bonds.
If the market is doing bad then everyone will start investing into the bonds. The 10 yr bond rates start to drop, and help the mortgage rates to go down as well.
When the market is doing well then the mortgage rates are going to continue to go higher.
Example:
09/11 Market crashed....Mortgage rates dropped to 4.25% for 30yr fixed ....and Greenspan lowered Fed rates....so that the 2nd mortgage rates will drop as well (auto loans, student loans, credit cards also dropped).
What's the point of lowering the FED Fund Rates? To 'stimulate' the stock market with 'consumer spending'.
If the FED lowers the FED funds rate it is BAD for mortgage borrowers looking to lock in an interest rate within the next days/weeks.
Remember...it is to stimulate stock market growth..and if the stock market is doing well then the mortgage rates are going to go up!