This year, the average discount rate has fallen every month while the average 30 year mortgage rate has climbed all but 1 month (a 5 basis point drop). In January, 2008 the discount rate averaged 3.94% and 30 year conventional fixed rate mortgages averaged 5.76%. In May, 2008 the discount rate had fallen to 1.98% (for a 196 basis point drop) and 30 year conventional fixed rates had risen to 6.04% (for a 28 basis point increase).
The chart shows the federal funds rate and the 30 year conventional fixed rate mortgage rate from January 2000 through May 2008 (for more details see: historical comparison of 30 year fixed mortgage rates and the federal funds rate).
Related: Affect of Fed Funds Rates Changes on Mortgage Rates - real estate articles - Bond Yields 2005-2008 - Jumbo and Regular Mortgage Rates By Credit Score
Want more data? See graphs of the federal funds rate versus mortgage rates for 1980-1999.
Stubborn mortgage rates defy conventional wisdom