When they sense that the stock market is in for a correction, they will pull out and move the money back into bonds. The result is seen in the volatility of recent years. Since mortgages are packaged into bonds, when the stock market is on the way up, the price on bonds is usually on the way down. The price of a bond works inversely to the yield on the bond. In other words, when the price is going up, the yield or return is going down.
Mortgage rates follow the yield on mortgage backed securities.
Therefore, when the money managers are dumping their money into the bond market, mortgage rates decline with the yield. It is all a matter of supply and demand. There has been an abundance of information in the form of Economic indicators suggesting that our economy has run out of steam and that we are moving into a recession. The result is that money managers have been retreating to the safe haven of bonds for some time creating a reduction in mortgage interest rates. There is NO direct correlation between the Fed rate cuts and mortgage interest rates except that when the Fed move to cut rates, they do it to stimulate the economy.