The Fed has a band rate for overnight rates, and yes, they pay attention to the other rates around...one of the reasons they are lowering is to bring down the inflationary issues (it sounds counter-intuitive, but this is how it is done nowadays).
The short of it is that inflation and other production costs are raising housing costs, and the fed rate is deflating this to a bit, but not enough.
I wish it was thievery, but to be honest, some people really can't afford a house and should never have been extended the credit to do so. Everyone got greedy. And the market will implode at some time.