The Federal Reserve cuts interest rates, but the 30-year fixed-rate mortgage rose 14 basis points higher.
The 30-year went up from 6.13% to 6.27% per Mortgage News Daily after the Fed announcement because Federal Reserve Chair Jerome Powell indicated that a December cut was far from a foregone conclusion. Financial markets factored that new information in, and bumped up the 10-year Treasury yield, which in turn, pulled mortgage rates up.
Mortgage rates don’t directly follow the direction of the Fed’s benchmark short-term interest rate; instead, they tend to move in tandem with the yield on the 10-year Treasury note.