As most people expected, the Federal Reserve did cut interest rates in September, but that doesn't necessarily mean that mortgage rates are going down, too, since the two rates aren't inextricably tied together. That was made apparent back in 2003, when the Fed adjusted rates thirteen times in a six-month period--eight times down and five times up--without a noticeable effect on mortgage rates.
However, since consumers don't generally understand that, they tend to get suspicious of lenders when mortgage rates don't go down after a Fed rate cut. The simple fact is that mortgage rates fall and rise according to how investors feel about long-term inflation. If investors believe that inflation will be rising, mortgage rates rise in response.
According to Bankrate.com, the average fixed rate on a 30-year mortgage in mid-July was 6.82%. As of mid-September, the rate has dropped to 6.32%. It turns out that those numbers exactly mirror the half-point reduction the Fed just put into place, but it's still only a coincidence, because interest rates are really reacting to America's natural market forces. When the Fed cuts rates, it's really reacting to declining consumer interest rates within the economy, and not the other way around, as most people believe.