Reported 2 days ago
The Federal Reserve indirectly influences mortgage rates through its monetary policy, though it does not set them directly. Recent decisions, like the recent benchmark interest rate cut, can affect lenders' rates, which may fluctuate based on various factors including Treasury yields, inflation, and market demand. While changes in the federal funds rate generally indicate trends for mortgage rates, fixed-rate mortgages are more closely linked to the 10-year Treasury yield. Understanding these relationships can help potential homeowners navigate the mortgage landscape.
Source: YAHOO