Mortgage rates jump 20 basis points following Fed cut

Core Insights - The Federal Reserve's recent interest rate cut led to an unexpected increase in mortgage rates, with the average rate on a 30-year fixed mortgage rising by 20 basis points following the announcement [1][3]. Group 1: Mortgage Rate Trends - The average rate on the 30-year fixed mortgage fell to 6.13% prior to the Fed's announcement, marking the lowest level in a year [2]. - Following the Fed's announcement and Chairman Powell's comments, the mortgage rate increased by 14 basis points on Wednesday and an additional 6 basis points on Thursday, reaching 6.33% [3]. - The current rate is 20 basis points higher than the rate recorded on Tuesday, and it is noted that the last time the Fed cut rates, the mortgage rate also increased [1][3].