Will the reduced interest rate result in lower motgage interest rates?

The Fed just cut interest rates again! Will the reduced interest rate result in lower motgage interest rates? Now that the Federal Funds rate is 2.25% the 30 year fixed mortgage rate should be 5.25%. Do you believe this will really happen and if so, when?

When the Feds cut the rates from 3.50% to 3.00% on Jan. 30th it didn't equate to the mortgage market. The interest rate has been cut since Jan. 22nd from 4.25% to 2.25%. The interest rate has not been reduced that much in less than two months even during the drastic rate cuts in 2001. Will the nervous markets prevent this rate drop to really show up in mortgage market?

I believe a lot of the buyers that I have been working with will suddenly be able to qualify for a house that just one year ago always seemed to be just out of reach.

For local real estate information: www.homerealtymanual.com