Rate cuts. Should I hold off getting this loan?

[Curtis H.]

Hello all, 

So I'm under contract for a property worth about $400K, and right when the loan agent sent the loan disclosures over to sign, I see the news about the rate cuts. So I held off signing anything. 

Naturally he's trying to persuade me to move forward, but I know there is no reason for me to rush. A couple days won't hurt while I get the right answers. When I asked about it he said there was a "insurance policy" like feature where if the rate goes down greater than a quarter point it will adjust the loan. But I said that sounds like trickery because if the rule is GREATER than a quarter point I'm protected, then that means there would have to be a half point rate cut, which will likely not happen.

Should I sign, shop for lower rates, or what? He says the mortgage rates are already accounting for rate cuts, etc. and that one doesn't necessarily mean it will affect the other.

Mortgage peeps, what are your thoughts on my holding off signing the loan disclosures in hopes for a quarter point better rate?