How the Fed Funds Rate Impacts Your Mortgage
It’s a common belief that the Federal Reserve “makes” consumer mortgage rates. When the fact is that although The Federal Reserve impacts cost, it doesn’t actually determine mortgage rates.
Mortgage rates are made on Wall Street.
Over the last two decades, the fed funds rate and the average 30-year fixed mortgage rate have differed by more than 5%, and by as little as 0.50%.
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