After leaving the benchmark interest rate untouched for a nine-month stretch, the Federal Reserve in September made the first in what is anticipated to be a series of rate cuts. These cuts will have ripple effects across the broader economy — but will they do anything to reshape the housing market, namely, mortgage rates?

Initially, “amid expectations that the Federal Reserve would cut interest rates , mortgage rates fell to their lowest level in nearly a year, dropping to 6.30%,” said Bankrate , citing its national survey of lenders. But then, “once the rate cut became official, mortgage rates rose.”

How are mortgage rates and the federal funds rate connected?

For starters, it is important to note that the Fed “does not directly set mortgage rates, which instead tend to follow

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