In mid-September, Federal Reserve Chair Jerome Powell announced a lowering of the benchmark interest rate to the 4-4.25% range. How might this change affect mortgages here in Naples, and does a dip in the benchmark automatically mean a drop in mortgage rates? While it is easy to assume the Fed’s move will result in declining mortgage rates, the process is a bit more complicated. To understand the financial consequences of the Fed’s decision, it helps to look at what factors determine the rate on your typical 30-year mortgage. H. Shelton Weeks serves as the Lucas Professor of Real Estate and is director of the Lucas Institute for Real Estate Development & Finance at FGCU.