LOS ANGELES — Hoping that mortgage rates will keep dropping following the Federal Reserve's first rate cut since last year? Don't bank on it.

As expected, the central bank delivered a quarter-point cut Wednesday and projected it would lower its benchmark rate twice more this year, reflecting growing concern over the U.S. job market.

Here's a look at factors that determine mortgage rates and what the Fed's latest move means for the housing market:

How rate cuts affect mortgage rates

Mortgage rates have been mostly falling since late July on expectations of a Fed rate cut. The average rate on a 30-year mortgage fell to 6.26% Thursday, its lowest level since early October, according to mortgage buyer Freddie Mac.

A similar pullback in mortgage rates happened around this time last year in

See Full Page