: The Federal Reserve has made its second interest rate cut of the year, and even though the federal funds rate doesn’t directly drive mortgage rates, homeowners are curious to know if now is a good time to refinance their mortgage.The Fed effect on mortgage ratesThe Fed uses short-term interest rates to influence bond markets and guide the economy. After raising rates to slow inflation, it started cutting them in late 2024 to adjust economic growth, as per a report. Then it waited nine months before makin ...