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federal reserve: Does the Federal Reserve Control Mortgage Rates? - 10/08/08 08:29 PM
Does the Federal Reserve Control Mortgage Interest Rates?  Or some other government entity or individual? 
Early this morning, the Federal Reserve announced they were cutting the Federal Funds rate by half a percentage point to 1.5%.   Many people assume this means mortgage rates will automatically follow suit.  Unfortunately this is not how it works.  Many complex factors affect mortgage rates besides the Federal Funds Rate.     
But before we discuss those, let's examine what rates the Federal Reserve DOES control.  The Fed only controls two key interest rates: The Federal Funds Rate and the Discount Rate.  Neither of these are rates charged on loans to … (0 comments)

 
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John Jones

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