The Federal Open Market Committee voted to cut rates by 0.25% due to lackluster employment data and elevated inflation. Mortgage rates don’t always drop in response to Fed cuts, as seen when rates climbed after three Fed cuts last fall. The recent drop in mortgage rates is due to economic concerns, not just Fed policy. Mortgage rates follow the 10-year Treasury yield more closely than the federal funds rate. Falling rates often signal economic distress, but can lead to increased housing activity. The improvement in affordability could benefit borrowers and homeowners. Certain types of borrowing, like credit cards, HELOCs, and auto loans, may see relief from a Fed rate cut.

Read more at Yahoo Finance: What the September Fed rate cut means for mortgage rates