39 | Friday, September 19, 2025LOS ANGELES (AP) — Hoping that mortgage rates will keep dropping following the Federal Reserve's first rate cut since last year? Here's a look at factors that determine mortgage rates and what the Fed's latest move means for the housing market:How rate cuts affect mortgage ratesMortgage rates have been mostly falling since late July on expectations of a Fed rate cut. Mortgage rates didn't keep falling last year, even as the Fed cut its main rate two more times. Like last year, the Fed's rate cut doesn't necessarily mean mortgage rates will keep declining, even as the central bank signals more cuts ahead. How mortgage rates are setThe Fed doesn't directly set mortgage rates.