Why are mortgage rates rising when the Feds are lowering the rate?

Answer 1

Those are two different kinds of rates. The Feds raise and lower the prime rate (which 'variable rate mortgages' are based on). However when you hear about mortgage rates rising or falling, those are 'fixed rate mortgages', which are based on bond rates. Those two rates are independent and therefore may or may not move together.

Answer 2

Mortgage rates rise as a result of a financial institution's tolerance for risk vs. profit. Even though the Fed may have lowered rates, banks are still uneasy about lending and are avoiding any risky loans.