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The economic factors and conditions that cause mortgage rates to rise and fall are somewhat complicated. Many consumers think that the government and/or the Federal Reserve actually control and set mortgage rates. Although the Fed does not directly control mortgage rates, many of their policies, including setting the Federal Funds target rate, have an impact on mortgage rates in indirect ways. Predicting mortgage rates is always more of an educated guess than an exact science. Having said that, there are some factors that almost always have a predictable effect on mortgage rates. These effects are often magnified when combined with other factors in the economy, and … (0 comments)
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