The Federal Reserve has decided to hold off on further cuts to short-term interest rates for an undetermined period. Meanwhile, a new Fed chairman is waiting in the wings. What does all this mean for mortgage rates? What happens when the Fed lowers interest rates First of all, the Federal Reserve and mortgage rates are working on two ends of a timeline. The Fed steers short-term interest rates, and mortgage rates are influenced by long-term bonds. When the Fed cuts its federal funds rate, as it did by ...