Rooms that have their notification settings to Mute/Off should be not be considered in the sort and should stick to the bottom of their room tag list. (Muted Favourites are at the bottom of favourites, muted people at the bottom of the people list, etc.)

[kerryarchibald]

Sorting algorithms

Setting	What happens	Muted rooms
Sort by: A-Z	The room list is sorted alphabetically, regardless of notification settings or counts/activity	Muted rooms are mixed in
Sort by: A-Z and Show rooms with unread messages first	The room list is sorted alphabetically. Rooms with a highlight or notification count (red or grey) are A-Z, followed by all other rooms A-Z	Muted rooms are mixed in depending on their notification state
Sort by: Activity	Regardless of the count, the room list has the latest activity at the top of the list (where activity is defined here).	Muted rooms are not included in the sort, and they are at the bottom of each list.
Sort by: Activity and Show rooms with unread messages first	Rooms with a highlight count or notification count (red or grey) are at the top of the list, sorted by latest activity (where activity that impacts sorting from table above). These are followed by all other rooms.	Muted rooms are not included in the sort, and they are at the bottom of each list.