Core Insights - The Federal Reserve's recent rate cut has not led to a decrease in mortgage rates, contrary to expectations [1][2] - Mortgage rates are influenced more by long-term bond yields, particularly the 10-Year Treasury Note, rather than short-term Fed rate changes [3][4] Economic Factors - Current inflation rates are rising, with the Consumer Price Index (CPI) reaching 2.9% in August 2025, which is above the Fed's target of 2% [5] - Increased inflation leads lenders to demand higher yields due to the perceived risk of future bond devaluation [6] - The U.S. Treasury is issuing record levels of debt to address federal funding gaps, contributing to an oversupply of bonds and driving yields higher [6]