The basic answer is that the two are only loosely related. But, as a rule of thumb, if news is good for investors it is usually increases the rate on a 30 Year fixed mortgage.

The rate for a 30 Year fixed mortgage is based on many factors, but one good indicator is the 10 Year Treasury Bond. As the value of the 10 Year goes up, the yield goes down and the price of the bond usually follows. So, if the Fed's reduce the Fed Rate, that tends to please investors and drive people into the stock market and out of the bond market. As a result, the price of the 10 Year Bond goes down, yields go up, and the rate of a 30 Year Mortgage goes up with it.

The cut will not matter as much unless there is a surprise in any way. The market is fully expecting a .25% cut with a smaller possibility of a .5% cut. This is already factored into price either in the stock or bond market. What will affect rates more will be the language the Fed uses to justify these cuts and the overall consensus of the voting members. As of late, they have shown more weight being placed on stimulating the economy at the mercy of keeping inflation in check. In any case, rates are really low right now, if you qualify, are in the market to refinance/buy, and you are waiting for the bottom to do so...NOW is the time to make your move. Lock it in!!!

Last week, after the Fed cut, the mortgage rates went down the next day and then sharply up. Mortgage rates are now higher than they were before the Fed cut last week. So, it would be hard to predict. But, if I am to venture there, I'd say, mortgage rate would probably go down the first day or two, and then up again. I think, long term, mortgage rates will continue increasing. So, it could be a good time to lock in that rate!

I'm going to go out on a limb here and say they'll go down?