30-year fixed mortgage

Consumers inspired by Wednesday's rate cuts in overnight lending rates shouldn't count on consumer interest rates falling in response
Last week, the average rate for a 30-year fixed mortgage was 5.48%, one of the lowest rates since 2004, according to Freddie Mac's survey.
After the Fed's move, market rates for 30-year notes and 10-year bonds rose steeply. By contrast, rates fell sharply for 3-month and 6-month bills
Fixed-interest mortgage rates are set by markets based on long-term money rates, not short-term rates. If bond investors fear that the Fed is letting inflation get out of control, then long-term rates could rise, as they did on Wednesday after the rate-cut decision.
Interest rates for other consumer products could drop. Adjustable-rate mortgages and some credit card rates are tied to short-term rates that closely follow the federal funds rate set by the Fed.
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