In a move that caught many by surprise, the Federal Reserve's interest rate cut on Wednesday did not translate to a corresponding decrease in mortgage rates. Instead, the average rate on a 30-year fixed-rate loan increased to 6.09% for the week ended September 19, according to Freddie Mac.

This unexpected surge in mortgage rates is a departure from expectations, which had suggested that rates would drop following the Fed's decision. However, it appears that other market factors are driving the increase, rather than any singular headline or event.

The trend continues into October, with current rates showing an upward trajectory. According to recent data, the 30-year fixed-rate mortgage has increased by +0.04%, while the 15-year mortgage rate and the 5/1 ARM have both risen by +0.07%. The jumbo mortgage rate has also seen a slight increase.

The surge in mortgage rates is not limited to just one type of loan or market segment. In fact, yesterday's data showed that mortgage rates jumped to their highest levels since late July. This unexpected increase can be attributed to underlying market movement, rather than any specific event or news story.

Despite the recent rise in rates, it's still a good time for homebuyers and refinancers to consider locking in a mortgage rate. With interest rates remaining relatively high compared to historical averages, it's essential to stay informed about market trends and to work with a qualified lender to find the best possible deal.

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