Fed Cuts Fed funds Rate to .25%

the Coronovirus is causing havoc in the mortgage markets.  In order to stem the losses in the stock market the fed has cut the Fed Funds rate to .25% from 1.25%.  This does NOT mean mortgage rates are going down however.  The Fed Funds rate is a short term rate that business use to borrowr from the federal government for a host of reasons.  They are typically short term loans meant to help busineses.  Mortgage rates are long term rates that have little to nothing to do with the Fed Funds rate.  Mortgage rates are determined by the the mortgaged backed securities market.  That market has been a roller coaster ride since last week.  After the cut, mortgage rates actually got worse.  In any case, rates are still good and there is no reason to believe that when the hysteria of the coronovirus begins to weaken rates will skyrocket.