Mortgage refi and fed rates?

Hi, I need to refinance my mortage. I have the paperwork in and our mortgage broker locked us in last week at 5 7/8. He is nuts for closing this deal (I think he is hurting because of the slow market). We never authorized the lock in, but he said rates had gone up since last week and we had 30 days for rates to change.

Can someone explain why rates are going up for a 25 year fixed mortgage if the fed is once again about to lower the prime rate? Are they not related? What moves the mortgage rate market. Thank you!
btw, my credit score is excellent and we are not getting a jumbo mortgage

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