Should you refinance your mortgage in light of the Fed's rate cuts? Here's why holding off until the new year could work to your benefit.

Mortgage rates aren’t directly tied to the federal funds rate like savings and CDs. Instead, they’re tied to the 10-year Treasury yield, which is at its highest level in three months.

Fed watchers see a greater chance the central bank may skip a rate cut at its last meeting of the year in December.

By Howard Schneider WASHINGTON (Reuters) -Strong U.S. economic and inflation data continue to reshape the debate among Federal Reserve policymakers over the pace and extent of interest rate cuts as investors on Friday further downgraded their expectations for a rate reduction at the central bank's December meeting.