Current mortgage rates are dropping and may continue to do so since the government takeover of Fannie Mae and Freddie Mac. Current mortgage rates had been rising as credit spreads due to lack of confidence in solvency of the GSEs creaped into the market.

The Fed makes a rate cut and current mortgage interest rates rise. The current mortgage interest rate on 30 year fixed loan routinely inches up compared to rates before the cut.

Consumers are expecting the opposite to happen and yet it rarely does. This opposite market reaction is pretty consistently over the last few cuts.