The average rate on a 30-year fixed mortgage has dropped to 6.13%, the lowest since late 2022, following a decrease of 12 basis points. This decline is linked to investor behavior in mortgage-backed bonds in anticipation of a Federal Reserve rate cut. Matthew Graham, COO of Mortgage News Daily, noted that the current situation mirrors trends observed in September 2024, where mortgage rates rose paradoxically after a Fed cut. Willy Walker, CEO of Walker & Dunlop, highlighted that historical data shows Fed cuts during recessionary periods tend to lower long-term rates, while those in non-recessionary times do not have the same effect. He predicts that even with expected cuts, long-term rates may not see significant changes, suggesting a potential sell-off in the 10-year yield after the Fed's announcement.